The federal government has launched a three-pronged strategy to shore up Australia’s domestic fuel supply.

The package will introduce a mandatory minimum stock holding, $200 million in funding to build additional diesel storage, and financial incentives for petroleum companies to process onshore, all to boost supply from 80 to 90 days.

Energy Minister Angus Taylor told Scott Emerson the government aims to prevent disruption in a “worst-case scenario”, such as strategic intervention by foreign actors or military action.

He rejected speculation the Australian public would end up paying for the policy in the form of a fuel tax at the bowser.

“This is about ensuring that we have enough competition, enough supply to both keep prices down and meet our strategic needs.

“We think we can do both.”

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