WA Expands Strategic Diesel Reserve to 20 Million Litres

The Cook Labor Government has expanded Western Australia's State-owned strategic diesel reserve, securing an additional 8 million litres of fuel and increasing the emergency stockpile to 20 million litres.

The extra diesel, supplied by bp, will be stored across Kalgoorlie, Geraldton and Kwinana, allowing rapid distribution to key industries including agriculture, mining and transport during supply disruptions.

The latest fuel purchase is expected to be net debt neutral, with the diesel to be sold directly to customers when required.

The announcement follows the arrival of a 4 million litre diesel shipment in Wyndham earlier this week, reinforcing emergency fuel supplies throughout the Kimberley region.

That shipment represents the first allocation from the State's strategic reserve and is expected to support remote communities dependent on diesel-powered electricity generation, alongside the agricultural, resources and freight sectors.

The strategic stockpile will remain fully owned and controlled by Western Australia, giving the State the ability to respond quickly when fuel supply issues arise. The initiative complements the Federal Government's Minimum Stockholding Obligation, which requires fuel companies to maintain reserve supplies.

The expanded reserve forms part of the Cook Labor Government's broader fuel security strategy, which has included activating State of Emergency powers to compel fuel companies to provide detailed supply chain information, expanding FuelWatch coverage to include all retailers across WA, increasing penalties for breaches by 300 per cent, and permitting larger triple road trains and heavier freight loads for milk and perishable goods.

Premier Roger Cook said the additional diesel would strengthen supply security across regional and metropolitan Western Australia.

"This extra shipment means we will have backup fuel in Kwinana, Geraldton, Wyndham and the Goldfields, supporting communities right across Western Australia," he said.

"With 20 million litres of backup diesel, we will be able to quickly direct fuel to where it's needed most."

Mr Cook said the State-owned reserve added an extra layer of protection beyond federally mandated stockholdings and existing commercial imports.

"My government is working around the clock to navigate this global issue and keep our State moving," he said.

Energy and Decarbonisation Minister Amber-Jade Sanderson said the Government was continuing to build reserves despite improving supply conditions and easing prices.

"While supply is firming up and prices are trending downward, we want to be overprepared, which is why we are continuing to build the State's strategic stockpile," she said.

"The fuel crisis has shown just how important it is to act fast and be flexible."

Ms Sanderson said strategically locating diesel reserves in key regional centres would allow the State to respond rapidly to local supply pressures before they escalated.

bp Australia Country President Paul Augé said the company was pleased to support the State's fuel security efforts.

"We're proud to support the Western Australian Government in strengthening the State's fuel reserves by securing additional diesel that can be accessed at bp's Kalgoorlie, Geraldton and Kwinana terminals," he said.

"Backed by bp's global import capability, this adds resilience to the supply chain and provides Western Australians with confidence during periods of volatility and heightened demand."