Govt to address oil reserve problem

Industry and motorists could face a multibillion-dollar hit at the bowser under a plan to ensure Australia meets its international obligations.

Australia is the only member of the International Energy Agency with a shortfall in its oil reserves.

Critics have argued this puts Australia in danger of quickly running out of fuel should there be an incident, such as a terrorist attack or war, which cuts supplies from overseas.

Industry Minister Ian Macfarlane, who released the energy white paper on Wednesday, said the government recognised the problem.

"We are committed to addressing that this year," he told reporters in Brisbane.

But he added it would come at a cost of "billions of dollars".

"That cost will almost undoubtedly be borne particularly by industry and motorists," the minister said.

IEA rules say members must have at least 90 days worth of oil imports in reserve. Australia holds only 52 days worth at present.