Fuel security: Iran war boosts support for domestic reserves

The decline in civilian shipping traffic through the Strait of Hormuz following the US–Israeli military campaign against Iran has brought into focus Australia’s fuel security.

Australia is estimated to hold between 30 and 44 days of emergency fuel reserves. However, the International Energy Agency recommends that countries should hold a minimum of 90 days of fuel reserves. Increasing Australia’s fuel reserves to 90 days would require building new infrastructure, including storage facilities at ports. Some have estimated that this would cost approximately $20 billion, over a period of four years.^*

The Lowy Institute commissioned a mini-poll, conducted from 18 May–2 June, in which respondents were asked whether they would be in favour of the government spending approximately $20 billion over four years to lift Australia’s emergency fuel reserves to 90 days. Three-quarters of Australians (74%) say they would be in favour of the government doing so. A quarter of Australians (24%) say they would not be in favour, and 2% say they are unsure.