Australia’s aviation and tourism sectors have backed the Federal Government’s new fuel security package, with industry leaders saying stronger diesel and jet fuel reserves could help shield travel from future global shocks.
Ahead of next week’s Federal Budget, the Government has unveiled a $10 billion-plus Australian Fuel Security and Resilience package aimed at boosting national fuel supply and storage, including a permanent government-owned fuel reserve of around one billion litres.
A major focus is on aviation fuel, with the plan set to increase Australia’s overall jet fuel reserves to at least 50 days through expanded storage and higher minimum stockholding obligations.
The move comes as airlines and airports globally continue navigating fuel volatility and geopolitical disruption linked to conflict in the Middle East.
For the travel industry, the package is being viewed as a long-term safeguard against major supply disruptions that could affect flights, touring and regional tourism.
The Australian Airports Association (AAA) welcomed the announcement, particularly the decision to lift jet fuel stockholding requirements.
AAA CEO Simon Westaway said recent global instability had highlighted the need for stronger domestic fuel resilience.
“These measures are an important step towards strengthening fuel supplies and maintaining confidence in Australia’s aviation sector,” he remarked.
“Increasing Australia’s minimum stockholding of jet fuel will help ensure future supply disruptions can be better managed, while supporting continued connectivity for communities, tourism and business.”
Westaway also used the announcement to push for greater investment in sustainable aviation fuel (SAF).
“Building sovereign fuel capability through SAF is not only an emissions reduction opportunity, but also an important resilience and economic security measure for Australia,” he stated.
The Tourism & Transport Forum (TTF) also backed the fuel security package, saying it could help restore confidence for Australians planning holidays, particularly to regional destinations.
TTF CEO Margy Osmond said fuel certainty remained critical for both travellers and tourism operators.
“These measures are a critical step towards boosting fuel supplies over the long term to help more Australians feel confident in booking a holiday and getting back on the road,” she said.
Osmond noted uncertainty around fuel access was already influencing travel behaviour.
“We’ve seen growing hesitation from travellers considering longer road trips, particularly into regional and remote areas, where confidence in fuel availability is essential,” she remarked.
Osmond added that reliable fuel supply supported much more than transport alone.
“Consistent access to fuel underpins not just travel, but the broader supply chains that keep tourism operators running, from accommodation to attractions and transport services,” she said.
Under the package, the Government will allocate $7.5 billion towards a Fuel and Fertiliser Security Facility to support fuel supply and storage projects. Another $3.2 billion will fund the new Australian Fuel Security Reserve, while $10 million will go towards studies into expanded fuel refining capabilities.
The Government said the changes would roll out progressively, alongside investment in new and upgraded storage infrastructure.
More details will be released in next week’s Federal Budget.
National fuel app
Last week, TTF, Accommodation Australia (AA) and the Caravan Industry Association of Australia joined forces to urge the Federal Government to create a single national platform showing real-time fuel prices and availability, arguing it would give Aussie families greater confidence to hit the road again.
“We would like to see the immediate establishment of a working group made up of the states, territories and industry players in the tourism and automobile sectors to deliver this outcome urgently,” Osmond said.
AA CEO James Goodwin added that, “Australia’s current fuel information landscape is difficult to navigate, particularly for those travelling across state borders”.
“This initiative would give motorists a single, trusted source of truth, delivering seamless and reliable information across state borders.”
KARRYON UNPACKS: Fuel security rarely grabs headlines in travel, until flights stop (or at least slow down). For Aussie travellers and travel advisors, stronger aviation fuel reserves could mean fewer disruptions and greater confidence during future global crises.
