Western Australia Secures Economic Future with 20 Million Litre Strategic Diesel Stockpile
The Cook Labor Government has significantly bolstered Western Australia’s energy security by expanding the state-controlled diesel stockpile to 20 million litres. Strategically positioned across key regional hubs including Kwinana, Geraldton, Wyndham, and the Goldfields, this 100 per cent state-owned reserve serves as a critical buffer for the mining and agricultural sectors, ensuring the state remains resilient against global supply chain disruptions while remaining net debt neutral.
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In a decisive move to protect the state’s primary industries from the unpredictable nature of global energy markets, the Cook Labor Government has officially expanded its strategic diesel stockpile to 20 million litres. This 8-million-litre increase, secured through a partnership with bp, establishes a critical buffer for Western Australia’s mining and agricultural sectors. Premier Roger Cook emphasized the importance of this geographical reach, stating that this extra shipment means the state will have backup fuel in Kwinana, Geraldton, Wyndham, and the Goldfields, supporting communities right across Western Australia. He further noted that with 20 million litres of backup diesel, the government will be able to quickly direct fuel to where it is needed most to keep the state moving.
The expanded stockpile is a key component of a broader, nation-leading fuel security strategy designed to be agile and responsive. Unlike federally mandated reserves, this 100 per cent state-owned diesel is controlled directly by Western Australia, allowing for immediate deployment during acute supply disruptions. Energy and Decarbonisation Minister Amber-Jade Sanderson explained that while supply is firming up and prices are trending downward, the government chooses to be overprepared. She highlighted that having a stockpile of diesel strategically positioned in areas of need gives the state the ability to quickly address specific supply issues and solve problems before they arise.
The collaboration with the private sector has been instrumental in reaching this milestone. By utilizing existing infrastructure at key terminals, the state ensures that the fuel is ready for distribution to farmers and miners at a moment's notice. Paul Augé, bp Country President for Australia, expressed pride in supporting the initiative, noting that the agreement secures additional diesel that can be accessed at bp's Kalgoorlie, Geraldton, and Kwinana terminals. He added that being backed by bp's global import capability adds resilience to the supply chain and provides Western Australians with confidence, bolstering fuel security and supply during periods of volatility and heightened demand.
Beyond the physical reserves, the government is also reinforcing the legal and regulatory framework governing fuel. This includes modernizing the Fuel, Energy and Power Resources Act 1972 to clarify emergency powers and protect taxpayers from the costs associated with potential legal challenges. Premier Cook reiterated his commitment to this proactive approach, stating that his government was the first in Australia to act to address the impact of the fuel shock and that he will always continue to do what is right for the state. These legislative updates, combined with the expansion of FuelWatch and increased penalties for non-compliance, ensure that the state has the most detailed supply chain information in the country.
Crucially, this entire security package is expected to be net debt neutral. The state purchases the fuel but will sell it on to customers when it is deployed, ensuring that the buffer is both a physical and financial insurance policy for the economy. This multi-layered strategy—combining strategic reserves, modern legislation, and market transparency—positions Western Australia as a leader in energy sovereignty. As Minister Sanderson concluded, the fuel crisis has shown just how important it is to act fast and be flexible, and the government remains dedicated to working around the clock to ensure fuel reaches the areas where it is most vital.
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