The Hon. Ashton Hurn, State Liberal Leader; The Hon. Ben Hood, Shadow Treasurer, Joint Media Release, 19 April 2026

The South Australian Opposition is calling for the creation of a strategic diesel reserve to help protect the state from fuel supply shocks now and into the future. 

Announced as part of the Liberals’ State Fuel and Resilience Framework today, the proposal would see the back-up supply held through partnerships with private fuel terminals. 

The initial reserve could be established immediately, with a view to growing capacity over time to between 10 million and 20 million litres. 

State Liberal Leader Ashton Hurn said similar approaches had already been adopted in other states, including Western Australia and Tasmania, and is urging the State Government to consider adopting the plan.  

“Other states are already taking steps to strengthen their fuel security, and South Australia should be doing the same,” she said. 

“This is about making sure we have fuel available here in our state when it matters most. 

“A strategic diesel reserve is a sensible safeguard that protects essential services, supports regional industries and strengthens our resilience. 

“We are urging the State Government to consider the sensible steps we have outlined in this plan to ensure our economy is protected.  

“Global uncertainties highlight how vulnerable our fuel supply is, and a smart government would be taking steps to safeguard our supply into the future.” 

The Liberal proposal comes as global instability continues to highlight the state’s heavy reliance on imported fuel and long supply chains.  

South Australia imports almost all refined fuel, leaving key industries exposed to disruption. 

Shadow Treasurer Ben Hood said the fuel will be rotated through normal supply to ensure quality isn’t compromised. 

“A strategic diesel reserve held within existing infrastructure gives South Australia a reliable safety net,” Mr Hood said. 

“It means we can support hospitals, emergency services and farmers if supply chains are disrupted. 

“Diesel is essential to our economy. Without it, crops aren’t harvested, goods aren’t transported and services can’t operate.” 

Mr Hood said the broader Fuel Security and Resilience Framework focuses on strengthening fuel resilience across the economy. 

This includes expanding on-farm diesel storage, increasing commercial storage capacity and ensuring critical infrastructure maintains minimum fuel reserves. 

The plan also proposes the establishment of a dedicated Fuel Security Coordinator to oversee supply monitoring and coordinate responses during disruptions. 

Adoption of the framework would require investment in the form of grants, low-interest loans, partnerships with industry and the purchase of the fuel reserve. 

It would build on existing infrastructure and complement the national fuel security framework, while addressing gaps at the state level. 

State Fuel Security and Resilience Framework pillars: 

• Governance and transparency: Establish a dedicated SA Fuel Security Coordinator and expand real-time fuel supply monitoring across the state. 
• Critical infrastructure protection: Ensure hospitals, SA Water, emergency services, ports and power stations maintain at least 7-14 days of on-site diesel reserves. 
• Strategic diesel buffer: Develop a state strategic diesel reserve over time, with an initial portion secured immediately using existing private terminal storage. 
• Agricultural resilience: Grants and low-interest loans to help farmers install or expand compliant on-farm diesel storage. 
• Commercial storage expansion: Incentives for logistics operators, manufacturers, mining companies and councils to increase fuel storage capacity. 
• Efficiency and diversification: Back research into bio-based products using agricultural residues and encouraging future oil development in the Cooper Basin to strengthen domestic supply.