House debates Questions without Notice

Fuel Security

Tuesday, 27 October 2026 House of Representatives

Jim Chalmers

Jim Chalmers Rankin, Australian Labor Party, Treasurer

2:14 pm

I thank the honourable member for Kennedy for his question. I acknowledge that for as long as I've known him he's been a passionate supporter of the ethanol industry and the crucial role that alternative sources of fuel will play in Australia's fuel security. it's a really important part of the Prime Minister's Future Made in Australia agenda and the work that he does with the energy minister and other ministers to make sure that we get this right. That's why the energy minister and I went to the Ampol refinery in Lytton in Brisbane to announce the $1.1 billion Cleaner Fuels Program. We put $1.1 billion behind this very important objective that we share with the member for Kennedy, which is to make sure that ethanol and other sources of cleaner fuels can be part of our fuel mix.

Ethanol is estimated to be a $15 billion industry by 2050. I acknowledge the honourable member would like that to be even bigger. It will also be a really big ongoing market for Australia's farmers. It's no coincidence that the NFF stood up with Minister Bowen and I at the Lytton refinery because they're excited about it. They're investors there, as is the super sector and others. You can look at that as part of a really big effort across our government when it comes to fuel security. We've got a $15 billion fuel security package in the budget. It was one of the five essential elements of the budget. One of the things that we're proudest of in the course of the last six months or so is the steps that we are taking and have taken to enhance Australia's fuel security when that fuel security is under maximum pressure for obvious reasons.

In addition to the Cleaner Fuels Program I mentioned, there is $7.5 billion for fuel and fertiliser security facility, $3.2 billion for the Australian Fuel Security Reserve and $2.9 billion for our responsible temporary relief from petrol prices. All of that is about acknowledging the pressures that the honourable member mentioned in his question as well. And that's before we get to the important work that we're doing with our international partners to shore up our fuel security. Again, right across the cabinet from the Prime Minister to the energy minister and right across our team, including, in my case, in three different sets of engagements in the last three weeks, fuel security has been a big emphasis of our international engagement as well. So we're doing a lot of work to make sure that we make the most of this opportunity when it comes to ethanol and that we make the most of every opportunity when it comes to our international partnerships. Fuel security is at a premium right now, and that's recognised in the government's policy agenda.

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