Australia's 38-Day Fuel Buffer: Why We're the Most Exposed Developed Economy

Japan has 254 days of oil reserves. South Korea has 200. The United States has 125. Australia? We're sitting on 38 days of petrol, 32 of diesel, and 29 of jet fuel.

According to official IEA data for December 2025, Australia had the smallest oil holdings of any member nation—the only one with less than 80 days' worth of imports on hand. The data was released as the Strait of Hormuz crisis enters its second month.

The $20 Billion Question

Energy Minister Chris Bowen laid out the maths this week: meeting the IEA's 90-day stockholding obligation would cost $20 billion over four years. That's the cost of building roughly 50 new schools, or funding Medicare rebates for two years.

Energy Minister Chris Bowen speaks on Australia's ongoing fuel crisis

There's a reason why consecutive governments haven't done the 90 days. I certainly did ask—every new energy minister does—'why don't we do 90 days?' And you get the advice it's going to cost $20 billion. That's $20 billion we're not spending on schools, hospitals or anything like that.

— Chris Bowen, Energy Minister

Australia hasn't met that 90-day obligation for more than a decade. Canberra doesn't maintain a strategic stockpile like other nations—instead, it requires oil companies to hold 'minimum stock holding' reserves. The arrangement effectively outsources national fuel security to the private sector.

How We Compare

The numbers tell a stark story. Japan holds 254 days of reserves, combining government stockpiles with mandatory private holdings. South Korea maintains roughly 200 days. China, though not an IEA member, is estimated to have around 100 days' worth in its strategic petroleum reserve—some 1.13 billion barrels.

The United States maintains 125 days through its Strategic Petroleum Reserve, holding 415 million barrels in salt caverns along the Gulf Coast. France has 108 days. The United Kingdom sits between 52 and 90 days depending on calculation methodology.

Australia: 38 days of petrol, 32 days of diesel, 29 days of jet fuel. Dead last among developed economies.

The Supply Chain Problem

Professor Sajid Anwar from the University of the Sunshine Coast told ABC News that Australia's supply chain carries hidden risks. 'Australia draws on multiple suppliers, including Singapore, South Korea and Japan, but these sources sit within the same Asia-Pacific supply chain, meaning major regional disruptions could still affect supply.'

The closure of the Strait of Hormuz has created the biggest oil supply shock in history. Six shipments bound for Australia were cancelled or deferred in recent weeks—though the government says they've since been replaced, with three additional shipments secured from alternative sources.

Better Than Before—But Still Exposed

Bowen's defence is that we're more prepared than when Russia invaded Ukraine. Back then, Australia held barely 20 days of diesel reserves.

We've got those 38 days of petrol, 30 days of diesel, 30 days of jet fuel and, you know, sure, people can say we need more, but it's a lot more than we've had previously.

— Chris Bowen

Fair point. But when farmers can't access diesel, they can't harvest crops. Dairy needs fuel to move product daily. Aviation runs dry in under a month. Construction sites shut down. Emergency services face rationing.

The question isn't whether we can survive 38 days. It's what happens on day 39.