New Delhi: The Australian Government is investing up to $260 million to expand Australia’s diesel storage capacity as part of its commitment to boost long-term fuel security.
Through the Boosting Australia’s Diesel Storage program, the government is backing 10 projects that will support around 1,000 new jobs and a 40% increase in Australia’s diesel stockholdings.
The program will offset the cost of the new minimum stockholding obligation in 2024 to keep fuel prices low for consumers.
Along with the additional diesel storage, these projects will also deliver 202 megalitres of additional petrol and jet fuel storage funded by the private sector.
The Boosting Australia’s Diesel Storage program is a key part of the government’s fuel security package announced in the 2020-21 Budget, to secure Australia’s long-term fuel supply by increasing onshore stockholdings and sovereign refining capability.
These grants will cover up to 50% of total eligible project expenditure. Projects are expected to commence construction from mid-2021 and be completed within three years.