Western Australia has secured an additional eight million litres of diesel for the state’s stockpile, strengthening its fuel security.
The deal, made possible through a commercial partnership with mining giant Rio Tinto and fuel supplier Viva Energy, brings the total state-owned reserve to 12 million litres.
The move is part of the government’s seven-point plan to shield Western Australians from global fuel shocks and supply chain disruptions linked to the ongoing conflict in the Middle East.
The stockpile is designed to be a lifeline for regional communities and the agricultural sector. Unlike standard commercial reserves, this state-owned fuel can be directed immediately to areas of acute need, including to regional communities and to agriculture sectors in the Wheatbelt and Great Southern.
The diesel will be stored in Wyndham, Esperance, and Kwinana, ensuring it is accessible to both the state’s northern and southern regions.
Energy and Decarbonisation Minister Amber-Jade Sanderson noted that WA’s vast terrain necessitates a localised approach.
“Western Australia is different to other states. We have a vast terrain and a number of priority areas and industries that need access quickly and efficiently to diesel.
“This strategic stockpile will be a lifeline for areas of acute need such as our regional communities and our farmers.”
The acquisition is expected to be net debt neutral, as the state government will purchase the fuel and subsequently sell it to essential industry and regional sectors as required.
Premier Roger Cook thanked Rio Tinto for offering the fuel to the government.
Rio Tinto Iron Ore CEO Matthew Holcz acknowledged the pressure on the state, noting the company was eager to help ease the burden on local communities and farmers during a tough situation.
The government maintains that WA is now better positioned than any other Australian jurisdiction to handle fuel volatility. The fuel volumes held by local suppliers remain higher than pre-conflict levels, while Perth recently recorded the lowest average fuel prices in the country.
The establishment and expansion of a WA government diesel stockpile is about ensuring the continuity of government services and industry, should international supply chains weaken.
