Regional fuel storage proposed for national diesel reserve

The Livestock, Bulk and Rural Carriers Association (LBRCA) is calling for regional, rural and remote Australia to be included in the Australian Government’s proposed Australian Fuel Security Reserve.

In its response to the government’s consultation, LBRCA has proposed a Regional Fuel Storage Scheme, with a five-year target of 250 million litres of additional verified diesel storage capacity in regional Australia.

LBRCA President Wade Lewis said national fuel holdings alone did not address the challenge of getting diesel to essential users during disruptions.

“Fuel security, particularly for diesel, cannot be measured only by how many litres Australia holds nationally, because distribution of that diesel is key,” Mr Lewis said.

LBRCA said additional regional storage could help maintain access to diesel for road transport, agriculture, processors and other essential users when supply routes are affected by floods, bushfires, road closures, damaged infrastructure, power outages or distribution network disruptions.

Under the proposal, regional carriers, agricultural businesses, fuel distributors, processors, councils, cooperatives and shared depots could participate, with investment directed towards areas with high diesel use, limited alternative supply routes and greater exposure to natural disasters.

LBRCA has proposed that a quarter of the strategic reserve be invested in regional areas, arguing that distributed storage would complement national and centralised fuel reserves by placing diesel closer to where it may be needed during a disruption.

The Australian Government is consulting on Australia’s fuel security and resilience arrangements through the Department of Climate Change, Energy, the Environment and Water.