Energy Minister Amber-Jade Sanderson flags WA fuel stockpile

Energy Minister Amber-Jade Sanderson has revealed the WA Government aims to establish its own fuel reserves for future emergencies.

She said the fuel crisis that has gripped the world since war erupted in the Middle East six weeks ago had demonstrated the need for the State to maintain its own reserves.

Ms Sanderson said it would be stored at existing facilities used by fuel companies, but crucially owned and distributed by the State.

“We are looking at securing additional supplies that would be entirely under the State’s direction and control as a strategic supply – on top of the national reserves – that will be able to support key industry or remote communities as required,” Ms Sanderson said.

“The State will purchase fuel, via companies, and then direct that to the industries and communities that need it.

“We want to make sure we have resilience in our supply chain, that we are able to direct fuel to exactly where it’s needed.”

In an interview with The Sunday Times, Ms Sanderson said the government having its own stocks was preferable to being at the mercy of fuel companies and distributors, who already had contracts to fulfil.

“We are still in early discussions,” she said.

“We are talking millions of litres of a strategic fuel supply.

“We learned through COVID very quickly that we need to be self-sufficient, that we have the largest jurisdiction in the world and that’s it’s complex to get, whether it is fuel or medical supplies, from A to B.

“So, we have to make sure we have pre-positioned supplies of whatever it is we need around the State.

“The aim of this strategic stockpile is to ensure we have fuel pre-positioned around strategic locations in the State should we have another demand spike.”

State Fuel Controller Rob Cossart welcomed the move.

“The war in the Middle East has highlighted just how important fuel security is, which is why we are looking closely at options to future-proof our supply,” he said.

“Additional volumes held by the Government could be quickly directed to where it’s needed most in times of crisis, keeping WA moving and our economy strong.

“The ability to be flexible and act quickly is an asset in times of global uncertainty and a strategic stockpile would allow us to do that.”

The BP Kwinana Oil Refinery stopped fuel production five years ago, after more than 60 years in operation, ending WA’s only major fuel-refining capability.

WA Nationals leader Shane Love has recently stressed that fuel supply disruptions, especially in regional WA, had demonstrated WA’s vulnerabilities.

Nationally, the Federal Government has an emergency stockpile of fuel. Up to 20 per cent has already been released to cushion the country from global supply crisis as a result of Iran’s closure of the critical shipping lane - the Strait of Hormuz - in the United States and Israel’s bombing campaign.

In addition, the Federal Government is underwriting the additional purchase of fuel from international markets by companies like Ampol and Viva Energy.

Prime Minister Anthony Albanese confirmed on Thursday the government has struck agreements with Ampol and Viva Energy to support additional fuel purchases through Export Finance Australia.

Australia relies on 90 per cent of its refined fuel from overseas countries, mainly in Asia.

Prime Minister Anthony Albanese yesterday arrived back from Singapore where he secured an encouraging but not legally binding deal to bolster fuel supplies from the key trading partner.

He and Singapore’s Prime Minister Lawrence Wong agreed on “maximum efforts” to meet each other’s fuel and gas needs as the crisis in the Middle East continues.

Federal Energy Minister Chris Bowen yesterday said Australia had 38 days of petrol, 31 days of diesel and 28 days’ worth of jet fuel left.

He said 57 tankers were on their way to Australia carrying fuel, with 4.1 billion litres of fuel locked in for the next month.

Mr Bowen said there were currently 173 service stations across Australia without diesel.

He said in WA, eight service stations had no diesel and 20 without unleaded. This was an improvement on previous days.

Ms Sanderson said ships carrying much-needed fuel were berthing here.

“We are working with existing suppliers to make sure we have supply. We have got 10 ships coming from BP, plus another diesel ship,” Ms Sanderson said.

“Viva have got a ship arriving in Esperance this week, which has allowed them to lift supply into the Goldfields.”

“My main message to the community is: supply continues. We want people to use what they normally use, no more, and no less.”