Following the economic sanctions made against Russia, Australia and 30 other members of the International Energy Agency (IEA) agreed to collectively release 60 million barrels of oil from their emergency reserves to help stabilise global energy markets. 

The actions of the IEA send a strong and unified message of the unacceptable risk Russia is creating on global energy security.   

Minister for Industry, Energy and Emissions Reduction Angus Taylor joined a meeting of ministers from IEA member countries to discuss the ongoing conflict in Ukraine and actions needed to assure the global market that there will be no shortfall in supplies.  

Minister Taylor stated that the Australian Government is working constructively with our partners to build confidence in the market and help stabilise prices. 

“Australia will contribute to the collective action and release stocks held on our behalf in the US Strategic Petroleum Reserve,” he said.  

“This significant action – one of four ever taken by the IEA – will increase supplies to the market, helping to put downward pressure on prices both globally and here at home. We know Australian families and businesses have been feeling this pressure at the pump so we hope this global action will ease prices.”   

The Australian Government has taken action through its comprehensive fuel security package to secure the country’s refining capacity until at least mid-2027.

They have also committed $260 million to build more domestic storage to support a 40 per cent increase in local diesel.   

As part of this package, Australia took advantage of historically low oil prices and stored around 1.7 million barrels of oil in the United States Strategic Petroleum Reserve. The volume of oils stocks to be released will be decided and announced in the coming days.  

Releasing additional stocks to the market through globally coordinated action will increase supply, with the aim to avoid a shortfall and ultimately lower petrol prices.   

Minister Taylor said the hostilities had also impacted international gas markets.   

“Australia has strong energy security and good supplies of both fuel and gas to meet domestic demand if there are any disruptions as a result of Russia’s invasion,” Minister Taylor said.  

“Australia can be relied upon to continue to meet our contractual obligations and contribute important liquidity to the global gas markets while continuing to ensure Australian gas is working for Australians.”  

Source: Minister for Industry, Energy and Emissions Reduction Media Release

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.

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