Poor Fuel Reserves Make Australia Vulnerable in Defence Review

Australia’s Defence Strategic Review, to be released in mid-April, will highlight the nation’s inadequate strategic fuel reserves, which make it highly vulnerable in a conflict due to its over-reliance on refined fuel imports. 

The report will recommend expanding fuel storage infrastructure, improving logistics and sustainment systems, and increasing munitions to strengthen the nation’s preparedness for war. The review focuses on the themes of sovereignty and resilience, and strategic mobilisation workshops were conducted to address the logistics challenges Australia would face in the event of an Indo-Pacific war in the next decade. 

The review’s release coincides with the Pentagon’s decision to disperse fuel supplies across the Indo-Pacific to support US military ships and aircraft. The 2012 force posture review had called out Australia’s non-compliance with International Energy Agency standards requiring member nations to hold the equivalent of 90 days of oil stocks. 

Today, Australia has only two domestic refineries, making it difficult to meet fuel supply requirements during a conflict. Upgrades are needed at bases such as RAAF Base Tindal and the Cocos (Keeling) Islands airfield to improve logistics and sustainment systems. 

The DSR follows the 2020 Defence Strategic Update, which warned of a decreased strategic warning time before a major conflict in the region.

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