The Albanese Government is introducing new fuel security powers next week to address regional shortages hitting farmers and small businesses.
What’s happening: The Albanese Government has announced new fuel security powers, with legislation to be introduced to parliament next week. The measures will allow the Commonwealth to underwrite additional fuel cargoes and strategic reserves to address supply gaps, particularly in regional areas.
The Albanese Government is introducing new fuel security powers next week, with amendments to the Export Finance and Insurance Corporation Act set to formalise the Commonwealth’s ability to underwrite additional fuel cargoes and other strategic reserves.
The announcement, made jointly by Prime Minister Anthony Albanese and Minister for Climate Change and Energy Chris Bowen on 28 March, comes as global fuel price pressures and a doubling in demand have placed parts of Australia’s regional fuel market under significant strain.
“While Australia’s fuel supply outlook remains secure over the near term due to the actions the Government has taken to date, the Government has been clear: the longer this war goes the worse the impacts will be,” the joint statement read. “We are acting now to prepare and shield Australians from the worst of it.”
The government said it is already in discussions with local and international fuel suppliers to help source additional cargoes as needed.
Who it is designed to help
The government was explicit about who the new powers are aimed at protecting. Farmers, regional communities and the services all Australians rely on are named directly as the priority beneficiaries.
The release acknowledged that despite stable national supply overall, global price pressures and surging demand have seen regional fuel markets come under serious pressure, with an unacceptable impact on regional customers who source their fuel through independent and uncontracted supply channels.
The new powers are specifically designed to address uncontracted demand, meaning the supply gaps that fall outside existing commercial arrangements and are therefore most likely to affect independent fuel suppliers, regional retailers and smaller operators without the buying power of large national businesses.
Eligibility for underwriting support will be structured to ensure additional supply can be delivered quickly through trusted operators with the capability and networks to reach the areas where fuel is needed most.
Export Finance Australia, the government’s deal-making arm, will be empowered to enter contracts of insurance or indemnity, give guarantees, make loans, or enter arrangements needed to help secure fuel supply from international markets.
The government was clear about the boundaries of the support. Commonwealth powers will only be used to help acquire additional supply that is valuable for Australia’s fuel security and where it would be cost prohibitive for private suppliers to source on commercial terms without government support.
Critically, the support will not replace or subsidise fuel that importers are already contracted to supply. It is designed to fill gaps, not to displace existing commercial arrangements or provide a blanket subsidy to the fuel industry.
What it means for your business
For small business owners in sectors that depend directly on fuel, the announcement signals that the government has moved from monitoring the situation to actively intervening in it.
The practical benefit for regional businesses, farmers and independent operators is the prospect of more consistent supply reaching areas that have experienced shortages, with government backing giving suppliers the confidence to secure additional and discretionary cargoes they might otherwise have been unable to source commercially.
For businesses already managing rising fuel costs alongside higher interest rates, insurance premiums and wage pressures, supply stability is at least one variable the government is now directly addressing.
The legislation will be introduced to parliament next week. The government said it would continue to pursue every practical measure required to shield the nation from the worst of the current global uncertainty.
Small business owners seeking more information on fuel supply conditions and support options can contact the Department of Industry, Science and Resources or visit the Austrade website.
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