Australia will support collective action by the International Energy Agency (IEA) to release oil stocks to help stabilise global energy markets.
Overnight, 31 members of the IEA, including Australia, agreed to collectively release 60 million barrels of oil from their emergency reserves to send a strong and unified message of the unacceptable risk Russia is creating on global energy security.
Minister for Industry, Energy and Emissions Reduction Angus Taylor joined a meeting of ministers from IEA member countries overnight to discuss the ongoing conflict in Ukraine and actions needed to assure the global market that there will be no shortfall in supplies.
"The global oil market is already showing signs of uncertainty in response to the Russian invasion of Ukraine and we are continuing to work constructively with our partners to build confidence in the market and help stabilise prices," Minister Taylor said.
"Australia will contribute to the collective action and release stocks held on our behalf in the US Strategic Petroleum Reserve.
"This significant action - one of four ever taken by the IEA - will increase supplies to the market, helping to put downward pressure on prices both globally and here at home. We know Australian families and businesses have been feeling this pressure at the pump so we hope this global action will ease prices."
The Government has taken action through its comprehensive fuel security package to secure Australia's refining capacity until at least mid-2027 and has committed $260 million to build more domestic storage to support a 40 per cent increase in local diesel.
As part of this package, Australia also took advantage of historically low oil prices and stored around 1.7 million barrels of oil in the United States Strategic Petroleum Reserve.
The volume of oils stocks to be released as part of Australia's contribution to the IEA collective action will be decided and announced in coming days.
The international price of oil is the key determinant of fuel prices in Australia. Releasing additional stocks to the market through globally coordinated action will increase supply, with the aim to avoid a shortfall and ultimately lower petrol prices.
Minister Taylor said the hostilities had also impacted international gas markets.
"Australia has strong energy security and good supplies of both fuel and gas to meet domestic demand if there are any disruptions as a result of Russia's invasion," Minister Taylor said.
"Australia can be relied upon to continue to meet our contractual obligations and contribute important liquidity to the global gas markets while continuing to ensure Australian gas is working for Australians."
IEA collective actions are a coordinated release of oil stocks into the global market. These releases aim to address any actual or potential shortfall of oil and help stabilise prices.
