The Mystery of Backyard Petrol Storage in Australia
As Australians face a petrol crisis, many are turning to stockpiling fuel at home, filling jerry cans with petrol in an effort to navigate the uncertain economic climate. However, this growing trend has raised concerns about the safety and legality of storing fuel in private residences. An investigation has uncovered a significant gap in regulatory oversight, leaving many questions unanswered.
While it is technically legal to store petrol and diesel in Australia, there are strict limits on the amount and specific guidelines for storage. According to Standards Australia, the national industry guideline known as Australian Standard AS1940 outlines these restrictions, allowing fuel to be stored within a five to 250-litre limit depending on the storage method. Despite this, authorities across the country have struggled to clarify which body is responsible for enforcing these standards.
Multiple local, state, and federal authorities were contacted to determine who is accountable for regulating fuel storage in private homes, but none provided a definitive answer. This lack of clarity has led to confusion among residents, particularly in states like Victoria, where government entities have stated they are not responsible for regulating fuel storage in private residences.
WorkSafe Victoria has emphasized the dangers of stockpiling flammable liquids on private property, stating that such actions carry inherent risks. They noted that while there is no specific legislation governing home fuel storage, individuals must still ensure their actions do not pose a risk to health and safety.
In New South Wales, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) confirmed there is no specific legislation associated with home fuel stockpiles. However, they encouraged residents to store only minimal amounts of fuel to reduce fire risks.
Queensland authorities have also highlighted the importance of compliance with state laws, even though penalties for exceeding industry guidelines remain unclear. They reiterated that unsafe storage can lead to serious injury, property damage, or environmental harm.
In Western Australia, state authorities could not confirm which governing body regulates privately stockpiled petrol. However, the Chief Dangerous Goods Officer, Ian Dainty, confirmed that national standards still apply and that offenders could be penalized under the Dangerous Goods Safety Act 2004. He warned that storing excess fuel increases fire risk and may affect home insurance coverage.
South Australia has taken a more direct approach, stating that the storage of highly flammable liquids in domestic settings must not exceed 120 litres, with container sizes no larger than 60 litres. Failure to comply can result in a $2710 penalty.
The situation in the Australian Capital Territory (ACT) is similar, with local fire authorities enforcing safety regulations. If excess storage poses a risk to public safety, regulatory action may be taken, including issuing notices under the Emergencies Act 2004.
WorkSafe Northern Territory has also emphasized the need to adhere to Australian Standards, advising residents to leave space in containers for fuel expansion and to store fuel in well-ventilated, shaded areas away from ignition sources.
Insurance Implications and Legal Gaps
The lack of clear laws and enforcement mechanisms has also raised concerns about the impact on home and contents insurance. Insurers, including Suncorp Insurance, have stated that they will not cover damage caused by hazardous materials that do not comply with relevant laws. However, if there is no law, the implications for policyholders remain unclear.
The Insurance Council of Australia has reminded policyholders of their duty to disclose anything that materially changes the risk profile of their property. Storing large quantities of fuel may constitute such a change, potentially invalidating insurance coverage.
Some insurers, such as Youi Insurance, have advised customers to review their product disclosure statements to understand any conditions or exclusions related to hazardous materials. However, the lack of clear legislation leaves many questions unanswered.
Government Response and Public Concerns
In March 2026, Energy Minister Chris Bowen condemned those who resold stockpiled fuel at exorbitant prices on online platforms, calling it “un-Australian and dangerous.” While he acknowledged that this behavior is limited to a minority of people, the issue highlights the broader challenges surrounding fuel storage and regulation in Australia.
With no clear authority to enforce guidelines and inconsistent rules across states, the problem of backyard petrol storage remains a legal and safety black hole. As Australians continue to grapple with rising fuel costs, the need for clearer regulations and greater public awareness has never been more urgent.
