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Western Australia will establish its own strategic reserves of diesel fuel to ease “acute shortages,” the state’s government said.
The government signed a deal with Cambridge Gulf Ltd. to buy and store 4 million liters of diesel, which is expected to arrive in the coming weeks, according to a statement. The inventory may be expanded to 12 million liters.
Is the figure supposed to read “billion”? WA uses about 25m litres of diesel per day.
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The government just purchased a reserve of two hours of usage.
Or is it a PR stunt?
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.