Liquid Fuel (Defence Stocks) Act 1949

What if an importer doesn't comply?

• Non-compliance is a serious offence — the penalty is £500 per day (set in 1949 pounds) for every day the importer fails to maintain the required stock levels.
• However, the Minister (or someone the Minister delegates) can grant a temporary exemption in writing, allowing an importer to temporarily drop below the required stock level. If an importer acts within the terms of that exemption, they commit no offence.

What if holding the stockpile costs the importer money?

• The Act recognises that being forced to hold more fuel than you'd normally want to is a real financial burden — you're tying up capital in stock you might not sell for a while.
• Importers are entitled to fair compensation from the Commonwealth (the Australian government) for any genuine financial loss caused by having to hold excess stock.
• If the government and the importer can't agree on the compensation amount, the importer can take the government to court to have it decided by a judge.

Why does it matter?

This law reflects a Cold War-era concern that Australia — being geographically isolated — could be cut off from fuel supplies during a conflict or emergency. By legally requiring importers to maintain local stockpiles, the government ensures there is always a domestic buffer of fuel available for defence purposes, without the government having to own and store all that fuel itself. The cost and logistics are shared with (and compensated to) the private sector.