The Australian Government has launched two connected consultation processes that explore initiatives to boost fuel security and resilience through a series of measures including: increased domestic storage, increased Minimum Stockholding Obligations, supporting domestic refining, and supporting Low Carbon Liquid Fuels market development.
Boosting Australia’s Fuel Security and Resilience
The Government has opened a consultation of detailed implementation of fuel security and resilience boosting initiatives.
In launching the consultation the Government outlined that it is committed to further strengthening Australia’s fuel security and resilience, drawing attention to the $3.2 billion allocated in the Budget for these initiatives alongside the decision to uplift the Minimum Stockholding Obligations and the ongoing commitment to domestic refining capacity.
The consultation is specifically seeking interested parties views on;
- the Australian Fuel Security Reserve (AFSR): a government-controlled 1 billion litre strategic fuel reserve, focussed on diesel and jet fuel
- increasing the Minimum Stockholding Obligation (MSO) by 10 days for each of diesel, petrol and jet fuel
- policy to support the two domestic refineries to continue operating in the decade beyond 2030.
in the context of: proposed design,; feasibility and implementation challenges; and cost/benefit and other impacts on industry, markets and consumers.
To assist participants a detailed Consultation Paper: Strengthening Australia’s Fuel Security and Resilience has been released for comment.
Consultation on this element is open until 15 September 2026.
ACAPMA is engaging with DCCEW directly on behalf of members. Members are encouraged to reach out to ACAPMA via communications@acapma.com.au with any feedback on this initiative.
Other interested parties are encouraged to make a submission at; https://consult.dcceew.gov.au/australias-fuel-security-and-resilience-package/take-the-survey?page=1
Securing Australia’s Cleaner Fuels Industry through Low Carbon Liquid Fuels
In addition to the consultation on boosting storage and fuel security initiatives the Government has identified low carbon liquid fuels (LCLF) as a priority industry and, in the 2026-27 Budget, it committed to working with industry on a market measure to drive demand and reduce our reliance on imported fuels.
According to the Government LCLF can help strengthen Australia’s long-term fuel security, support new industries and jobs, and reduce emissions in sectors that are difficult to electrify, including aviation, heavy transport, mining, agriculture and defence – but is unlikely to attract the investment needed to grow a domestic LCLF industry. A stronger demand signal is also needed to support industry growth and unlock these benefits.
The consultation process is specifically seeking feedback on a conceptual framework for a mechanism to increase the uptake of LCLF in Australia. The Consultation Paper: Securing Australia’s Cleaner Fuels Industry, outlines the proposed framework and key design features, including how the mechanism could work, its potential impacts and implementation considerations.
Consultation on this element is open until 15 September 2026.
ACAPMA is engaging with DCCEW directly on behalf of members. Members are encouraged to reach out to ACAPMA via communications@acapma.com.au with any feedback on this initiative.
Other interested parties are encouraged to make a submission at; https://consult.dcceew.gov.au/securing-australias-cleaner-fuels-industry-consultation/make-a-submission
ACAPMA
