Australia’s dependence on imported liquid fuel poses significant risks, according to a new Deloitte report, which calls for urgent investment in low-carbon alternatives to safeguard supply.
With 80 per cent of fuel sourced overseas and domestic refineries closing, any supply chain disruption could severely impact the economy, national security, and defence. The report, commissioned by Bioenergy Australia, warns that reliance on Asian refiners for 90 per cent of liquid fuel makes Australia vulnerable to geopolitical tensions.
While electrification is advancing, key industries such as aviation, mining, and long-haul freight will still depend on petrol and diesel, accounting for an estimated 80 per cent of demand by 2050. Australia currently spends $50 billion annually on fuel imports.
Bioenergy Australia’s chief executive, Shahana McKenzie, emphasised the urgency of developing a low-carbon fuel industry to reduce reliance on imports. Retired Air Vice-Marshal John Blackburn stressed the importance of maintaining domestic fuel stockpiles and processing capabilities to ensure supply security.
To address fuel supply vulnerabilities exposed during the pandemic, the federal government introduced the Minimum Stockholding Obligation, requiring reserves equivalent to 90 days of net imports. However, Blackburn criticised this measure, arguing it inaccurately includes fuel still in transit.
Energy Minister Chris Bowen defended government efforts, stating that Australia’s fuel reserves are at their highest levels in years, with measures in place to ensure refineries and importers maintain stockholdings of petrol, diesel, and jet fuel. He also highlighted investment in low-carbon alternatives under the Future Made in Australia initiative.
The report underscores the need for immediate action to reduce reliance on imports and secure Australia’s fuel future through sustainable alternatives.
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