Australia’s 50-day fuel crisis revealed

AUSTRALIA has emergency fuel stocks for less than 50 days in reserve and this has sparked the Federal Government to review the nation’s fuel security.

Fears that a future conflict in the Middle East could threaten the already recordlow reserve also prompted the review, announced by Energy Minister Josh Frydenberg.

The urgent review will examine Australia’s ability to withstand “disruptions” to the supply chain as well as how fuel is supplied and used.

Mr Frydenberg said the review should not be seen as Australia having a fuel security problem.

“We have not experienced a significant disruption to fuels supplies since the OPEC oil crises in the 1970s, but there is no room to be complacent,” Mr Frydenberg said.

“Australia’s liquid fuel supply increasingly depends on overseas sources and relies on market forces to maintain reliability and affordability.

“The assessment will identify whether the Government should take further steps to ensure Australia’s domestic fuel supply is reliable.”

Liquid fuel accounts for 37 per cent of Australia’s energy use, including 98 per cent of transport needs.

Australia has had less than 90 days’ supply of fuel in reserve since 2012, breaching an International Energy Agency deal with 30 other nations to have three months’ supply in case of emergency.

Government figures show Australia has 22 days’ supply of crude oil, 21 days of diesel, 20 days of petrol, 19 days of aviation fuel, 59 days of LPG and a net supply of about 49.6 days.