KIERAN GILBERT: Big news announced here in Canberra today. Australia is looking to boost fuel reserve as global oil prices plunge as a result of the global COVID pandemic. The Energy Minister Angus Taylor has announced the Government will commit $94 million to an initial strategic fuel reserve. Angus Taylor, thanks for your time. This $94 million in terms of the fuel reserve, can you explain to our viewers how that's going to work?

ANGUS TAYLOR: Yeah, we're going to spend $94 million building a strategic fuel reserve for Australia. We're striking while the iron is hot. We have low oil prices, we have ample supply of oil around the world right now but we have to be in a position where if there is a major disruption, we have the fuel supplies we need for Australians and this is beginning to build that strategic fuel reserve whilst we have very low prices. Now, the challenge is, one of the reasons there's such low prices is there's not much storage left in the world and very little left in Australia. We will need to rectify that situation over time but in the short term, we can buy this fuel, store it in the US and then start working with industry to establish local storages to ensure we've got a local supply as well as a full supply chain across the globe. This is good news for Australians because what it means in practice is we're able to deal with global disruptions that have occurred over the years. We've always managed to maintain our fuel supply in the face of those disruptions but this will strengthen our position as we look forward.

KIERAN GILBERT: And what's happening in terms of that enhanced capacity domestically to store fuel because obviously, if there's a shipping crisis or something, that storage in the United States won't work, we need it onshore, don't we?

ANGUS TAYLOR: Right, but at the moment, the opportunity is to buy fuel at low prices because, you know, really what we're aiming to do here is build a strategic fuel reserve in a way which makes the best possible use of taxpayer money. When the price was $80 a barrel, Kieran, the value wasn't there. At the prices we're seeing now, there's much more value to the Australian taxpayer. So the key is get on with it, store it where we have to and over time, of course we do want it as close to the customer as possible. That's where you always want a strategic reserve like this one. But we've been holding discussions with a number of the refiners over recent months, starting to look at the best possible options for local storages. Those discussions will go on. There's work to be done on where are the best locations, and how to do that, but I'm not going to pre-empt the outcomes of those discussions now, only to say that that's an important part of the work we're doing but right now, the price is so low. This is a fantastic opportunity for Australia and Australians to ensure we've got that very reliable fuel supply we need.

KIERAN GILBERT: And on gas projects, does the National Cabinet, this crisis we're facing, provide a mechanism by which we can get government agreement on pushing ahead with some of those gas projects?

ANGUS TAYLOR: We're already pushing ahead with several of them. Under the Underwriting New Generation (Investment) program we've committed to two projects; one on the Queensland-New South Wales border and one down in Victoria. You know, we see with lower gas prices there's an enormous opportunity for gas generation, for electricity, for gas-based or energy-based manufacturing businesses, just as we're seeing low oil prices providing an opportunity to build a strategic fuel reserve, so to low gas prices are providing an opportunity to start building our energy intensive manufacturing sector and strengthen those businesses we have now in Australia, so many that rely on low cost energy for their prosperity. Whether it's in agriculture, or metals processing, or ammonia and fertiliser, you name it, there's a whole series of industries that rely on these low energy prices. We are seeing lower wholesale energy prices - both gas and electricity. We were seeing it even before COVID-19 came along. That's creating a great opportunity and the Government is doing everything it can to ensure that as we come out of this, we have a recovery which is making the most of those lower energy prices.

KIERAN GILBERT: And are you satisfied that companies are passing on the lower fuel price to people at the bowser? Is that happening? 

ANGUS TAYLOR: Yeah it is happening. I mean, we've seen it happening. You can always argue about whether it's been happening fast enough, but we are now seeing regularly in many parts of Australia, prices below $1 a litre, certainly below $1.10 a litre. They were closer to $1.50 a litre only a few short months ago so that's been a very significant bonus for fuel consumers, and that's good news. The ACCC has been watching this very, very closely. And of course consumers, I know, have been using apps which allow them to choose the lowest cost fuel and many have been making use of that. And that puts pressure, the best regulator of any industry, Kieran, is a consumer and consumers have been doing exactly that. We want to see the same with electricity and with gas. There are lower wholesale prices, it was happening even before COVID-19 came along, and it's important that those reductions in wholesale prices are passed onto consumers, whether they're small retail consumers or much bigger commercial, industrial users. 

KIERAN GILBERT: The PM talks about economic sovereignty in the wake of this crisis. We're awaiting the Government's electric car strategy. Is that a potential way, not just in terms of manufacturing but also in terms of reducing reliance on foreign oil if we can push ahead with that electric car strategy?

ANGUS TAYLOR: Yeah, sure, there's a whole range of different ways we can be less reliant on foreign oil. One is to have more of our own local oil. So we've been supporting the developments in the Beetaloo Basin which are gas and oil developments up there, and that's good news for getting more supply. Continuing to see strong supply coming out of Bass Strait is a priority. But also new technologies and whether it's electric vehicles or other technologies that put less reliance on imported oil, I mean obviously that does go to aid fuel security, it won't happen overnight, Kieran, but that's part of what will strengthen our fuel security over time. Look, having control over your own destiny, it comes into very sharp relief at a time like this when we're seeing this COVID-19 crisis and it's important that we learn the lessons of having control of our own destiny, having control of Australian manufacturing and really critical industries. We're seeing that in the health sector right now. And we need to think about fuel security as an essential sector, it absolutely is. If you're a farmer that relies on diesel to be able to get your crop off or you're a truckie that needs the diesel to be able to transport the goods you're moving, you're in manufacturing, you're a tradie that relies on that fuel to be able to move between your customers, your clients. All of those people are absolutely reliant on having a reliable supply of fuel and that's why we're putting in place these reserves, these strategic reserves, and buying whilst there's this historically low price to take advantage of.

KIERAN GILBERT: Minister, I appreciate your time. You've got to go to Cabinet. So I'll let you go. Thanks. 

ANGUS TAYLOR: Thanks Kieran.

ENDS