Australia Sustainability "Budgeting for Australia's Fuel Security" Brunton

Research evidence excerpt

Australia Sustainability "Budgeting for Australia's Fuel Security" Brunton

Global Research

15 May 2026ab

Australia Sustainability Equities

AustralasiaBudgeting for Australia's Fuel Security

Global Sustainability

Lydia Brunton

The 2026–27 Federal Budget outlines key measures to address fuel security concerns Analyst

highlighted in our prior notes on diesel and EVs, alongside increased defence spending lydia.brunton@ubs.com

and funding to progress environmental and gambling reforms. +61-2-9324 2172

Phineas Glover

A$10.7bn for fuel security… targets lifting diesel and jet fuel reserves to ~50 days (vs Analyst

~30), including a ~1bn litre government owned reserve and incentives for industry phineas.glover@ubs.com

stockholding, against Australia’s high import reliance (~90% diesel, ~81% jet fuel). +852-3712 3917

Higher minimum holdings shift focus to stockholding economics (working capital and Leigha Miyata

storage capacity) and the underwriting/incentive settings, with the cleanest read Analyst

through in the downstream fuel supply chain (ALD, VEA). leigha.miyata@ubs.com

+81-3-5208 7101

…. and a mandate for low carbon fuels. The Govt states “we will introduce a Jarvis Lam

Analystdemand measure that provides certainty for new Australian low carbon liquid fuel

jarvis.lam@ubs.com

production and stimulates investment in new, clean fuel refining capacity.” This is +852-2971 7701

significant and responds to calls from the CSIRO in 2024 for demand creation policy to

de-risk investment. With a nascent domestic industry, the sequencing matters:

mandated demand that outruns new domestic supply limits the improvement in fuel ESGsecurity even if emissions intensity improves. Australia does have the feedstock (~$4bn Environmental