A review of Australia’s fuel reserves has been put into motion by the Turnbull government with fears growing that the country has merely days of emergency stocks left.
Federal Energy Minister Josh Frydenberg made the announcement that a review of liquid fuel security is being undertaken.
“The assessment is the prudent and proper thing to do to make sure we aren’t complacent,” Frydenberg said, easing fears of a fuel security problem. Australian Prime Minister Malcolm Turnbull also did his part in setting aside worries of a fuel problem by saying that the review was mere “good housekeeping.”
However, a report by Fairfax Media has painted a different story, indicating that the country had only a 22-day supply of crude oil, 59 days of LPG, 20 days of petrol, 19 days of aviation fuel and 21 days of diesel.
The International Energy Agency is expecting countries to keep a 90-day supply but Australia has only under 50 days.
“The assessment will also help inform Australia’s plan to return to compliance with the International Energy Agency’s emergency stockholding obligations by 2026,” Frydenberg said. “Australia’s liquid fuel supply increasingly depends on overseas sources and relies on market forces to maintain reliability and affordability.”
The last National Energy Security Assessment was done seven years ago, in 2011.
Australia is at the moment, leaning on imports for most of its fuel needs. The review is set to be concluded by the end of the year.