Australia’s liquid fuel security has a long history of policy debate and is subject to changing trade and industry dynamics. Fuel supply and security was also a key focus in the 2026–27 Budget in response to ongoing supply disruptions in the Middle East. This paper outlines Australia’s liquid fuel supply chain, storage arrangements and some key measures from the Budget.

• Australia relies on imported liquid fuels. These fuels include diesel, petrol and aviation fuel produced by refining crude oil. 
• About 20% of Australia’s liquid fuel comes from domestic refineries. Australia has two major refineries: Geelong (Victoria) and Lytton (Queensland). 
• Australia exports most of its crude oil and refinery feedstock because it is lighter than that required by Australian refineries. 
• There are three different official measures of Australia’s liquid fuel reserves. Each serves a different purpose and uses different methods to calculate distinct estimates of Australia’s fuel reserves.
• Australia’s fuel security is influenced by global events. While domestic actions can improve resilience to shocks, exposure to international markets and supply chains remains a key feature.