THE federal government is confident it has measures in place to manage energy supplies in light of tightening global stocks due to the Ukraine war.
Federal energy minister Angus Taylor said Australia was in a fortunate position with good supplies of gas and oil for domestic use, along with a number of other measures implemented to boost fuel security.
He pointed to initiatives such as the government's $260 million pledge to build more fuel storage capacity along with its investment in 1.7 million barrels of oil stored in the United States Strategic Petroleum Reserve (SPR) for use during an international crisis meant Australia was well positioned to weather a fuel crisis.
However, while the US reserve sounds impressive to the average fuel user it would only be enough oil to supply Australia's needs for a paltry one and a half days, with another negative the time lag to physically transport the oil to Australian from the US.
The Institute of Public Affairs seized on the lack of reserves, saying sufficient fuel stocks were a matter of national security.
"This is a serious matter of national security and raises questions on how the defence force could be mobilised in a crisis with only 1.5 days of national oil supplies," said IPA director of research Daniel Wild.
Mr Taylor said increasing local storage was critical to achieving better fuel security.
He said along with increasing storage there had been work to improve existing oil refineries at Brisbane and Geelong, with a commitment now in place guaranteeing their future until at least 2027.
As part of the improvement of storages diesel suppliers will now also be required to store 40 per cent more product under minimum stockholding obligations.
Mr Taylor said the government was monitoring the situation in Ukraine carefully.
"The situation between Russia and Ukraine has added to global oil price pressures, which are being experienced right around the world," Mr Taylor said.
"We understand that as a result of this, many Australian families and businesses are feeling this at the pump when they go to fill up their vehicle."
In terms of retail pricing he added the Australian Competition and Consumer Commission would continue to monitor the market to ensure consumers aren't overpaying.
While Australian consumers are reeling from the historically high prices, retail Australian fuel prices are around 25 per cent lower than the Organisation for Economic Cooperation and Development (OECD) average.
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