Tasmania will build its own “strategic fuel reserve”, the state government says, with up to 12 megalitres of additional storage potentially coming online at Selfs Point in Hobart.
Energy Minister Nick Duigan said on Thursday three decommissioned tanks at the Hobart facility could be brought back into use.
Other options are also being explored with major diesel users, including TasRail, TasPorts and the mining industry.
Duigan said Tasmania’s fuel position remained secure, with 85 days of petrol and 48 days of diesel either on-island or in transit.

“We are well placed,” he said. “The strategic reserve obviously gives us, further, a buffer against international events and we see that as really important.”
The announcement builds on work flagged by Premier Jeremy Rockliff on March 17, when the government said it was assessing storage capacity.

At the time, Rockliff said it was important to “understand Tasmania’s vulnerabilities and opportunities and take sensible steps to strengthen our position where appropriate”.
Labor leader Josh Willie welcomed the move but said it was overdue.
“Labor welcomes signs that Premier Rockliff is finally beginning to take the escalating fuel crisis seriously,” Willie said.
“Unfortunately, until today we’ve seen next to nothing meaningful from this government.”

“It is frustrating it took for Labor to ask repeated questions for the Liberals to finally take some action.”
The announcement follows a fire at the Viva Energy refinery in Geelong on Wednesday night, one of two suppliers shipping fuel to Tasmania.
Duigan said Viva had advised Tasmanian supplies would not be affected, with any lost refining capacity to be backfilled through imports.
Deputy Premier Guy Barnett will travel to Singapore next week on a trade mission, where he will hold meetings on fuel security.

Duigan said the government would have more to say on storage opportunities in the “coming days and weeks”.