The Western Australian Government has struck a deal with local independent fuel supplier Cambridge Gulf to purchase and store four million litres of diesel in the Kimberley region.
Under the agreement, additional volumes of diesel will be coming to Australian shores, with Cambridge Gulf placing extra orders from overseas suppliers.
The fuel is anticipated to arrive in the coming weeks and will be stored free of charge by Cambridge Gulf but wholly owned by the state.
Having an additional quantity of diesel under Western Australia’s direct control is important for remote Aboriginal communities and key industries, such as agriculture which relies heavily on uncontracted fuel volumes.
An option for future fuel purchases is now being considered, with capacity for up to 12 million litres to be stored at the facility.
Energy and Decarbonisation Minister Amber-Jade Sanderson says the state has made real progress in the last month to address supply issues across regional areas.
“This strategic stockpile will give Western Australia a source of fuel under its direct control — providing much needed flexibility as we continue to navigate this global issue,” Sanderson says.
“While fuel is important to many Western Australians, this is particularly true for remote communities and regional industries who rely on diesel for their operations.”
What’s been done
This news comes after the Western Australian Government took measures to activate emergency powers to compel fuel wholesalers to provide critical information on fuel stocks and supply chains.
Under the Fuel, Energy and Power Resources Act, the state government has access to powers targeted specifically at its fuel supply chain, allowing the government to get better information and respond appropriately.
Earlier this year, the Australian Government halved the fuel excise on petrol and diesel for three months. The halving of the fuel excise will reduce the cost of fuel by $0.0263 per litre. This will reduce the cost of a 65L tank of fuel by nearly $19.
The halving of the fuel excise will begin from 1 April 2026 and run to 30 June.
The Australian Government also reduced the heavy vehicle road user charge to zero for three months. Concurrently, the federal government will defer the next scheduled increase in the road user charge by six months.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash
