The missing piece in our fuel security debate is storage
Australia’s economy runs on diesel, but the country still lacks the storage needed to weather the next major disruption.
Australia talks about fuel security as though petrol prices are the main issue. They’re important, of course, but they aren’t the primary concern right now. Diesel powers the economy and Australia doesn’t store nearly enough of it.
The government’s recent efforts to shore up supply from other nations — including the US, Mexican and our Asian neighbours — are welcome. But it misses the issue most likely to leave our economy and essential services running on fumes: storage.
For years, Australia has held only about a month of diesel supply against national consumption. That figure has barely changed through pandemics, wars, sanctions and shipping disruptions. We have, in effect, relied on assumptions of global continuity that look less credible with every new shock.
Diesel is the foundation of freight, agriculture, mining, construction, defence logistics and emergency services. When diesel deliveries are delayed or prices spike, the damage does not just show up at the bowser. It shows up in food costs, stalled exports, regional disruption and weakened national capability. By the time the public notices, the damage is already done.
