The Western Australian government is creating a stockpile of diesel to shield the state’s critical resources and agricultural industries from global fuel supply shocks.
WA Energy Minister Amber-Jade Sanderson said in a press conference, and reported by ABC News, that recent volatility in international markets, specifically the conflict in Iran, was a key driver for the proposed reserve.
“While fuel is important to many Western Australians, this is particularly true for remote communities and regional industries who rely on diesel for their operations,” she said.
The federal government currently mandates that fuel retailers hold approximately four weeks of reserves, Sanderson argued this system has not been operating to Western Australia’s advantage.
She pointed to a geographic imbalance, noting that while some operators store fuel within WA, others maintain their mandatory reserves in other states, leaving it vulnerable during supply chain disruptions.
“What we found with the [minimum] stock obligation is that not every fuel supplier had their store in Western Australia,” Sanderson said.
She emphasised that a state-based reserve, amounting to millions of litres, would provide essential resilience for remote communities and businesses that rely on the independent spot market, which often dries up during periods of high demand.
“We have made real progress in the last month to address supply issues across regional areas, but we need to be prepared for the months ahead.
“[A diesel stockpile] would allow us essentially to release fuel onto that spot market as required, if we see another spike in demand and that spot market evaporates.”
The state government is currently in discussions with the mining industry to identify existing, unused storage capacity that could be repurposed for the stockpile.
Premier Roger Cook said “Having access to this fuel now, with the ability to store more in the future, is a crucial step towards shoring up the state’s fuel security for the future.
“It’s diesel that will be 100 per cent state owned and reserved for those who need it most, such as remote communities and the agriculture sector, allowing us to act quickly when we need to.”
According to Sanderson, the existing transport network is well-equipped to distribute the additional diesel to the Wheatbelt, the Goldfields, and other remote regions as needed.
“This would be solely for West Australians and be directed at the discretion of the state government to areas that need it most, for example agricultural areas at the end of those supply chains, or remote communities that still rely significantly on diesel.”
The government confirmed that there are currently no plans to stockpile petrol, as diesel remains the primary concern for the state’s economic backbone.
Sanderson said she did not expect a separate stockpile to cause tensions with the federal government.
