Western Australia weighs creating a state diesel reserve amid fuel supply concerns
The Facts
- The Western Australian government is considering creating its own strategic diesel or fuel stockpile.
- Energy Minister Amber-Jade Sanderson said the proposed reserve would involve additional diesel purchased by the state government and held in storage for supply disruptions.
- Sanderson said the proposed reserve would be for West Australians and directed by the state government to areas that need it most.
- The WA government has said the state's size and reliance on diesel in sectors such as agriculture, mining and remote communities are factors behind the proposal.
- Multiple reports say the proposal follows fuel supply pressures and shortages associated with conflict in the Middle East.
- WA officials are examining storage arrangements for the reserve, including spare capacity in existing infrastructure.
Context
Why is Western Australia considering its own diesel reserve?
State officials say recent fuel shortages and supply-chain pressure exposed risks for Western Australia, especially because the state is geographically isolated and major industries and remote communities depend heavily on diesel 7NEWS.com.au,Australian Financia…,Australian Broadcas….
How would the proposed reserve be used?
Sanderson said it would be additional diesel bought by the state and held for difficult periods, with the WA government deciding where it should go, including places at the end of supply chains such as agricultural regions, mining operations and remote communities Daily Mail,Michael West.
How is this different from existing fuel stock requirements?
The ABC reported that the federal system already requires fuel retailers to hold about four weeks of petrol and diesel reserves, but Sanderson said that arrangement had not worked optimally for WA because not all suppliers keep their stock in Western Australia Australian Broadcas…,Spectator Australia.
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