The reserve is designed as a back‑up supply rather than an everyday fuel source, helping farmers plan ahead with confidence as they head into the winter growing season.
Authorities said it would only be released in extreme circumstances, under Level 4 of the National Fuel Security Plan.
The Victorian Government said the measure would help protect food production and stabilise grocery prices, with agriculture contributing more than $22 billion annually to the state’s economy.
Industry has broadly welcomed the move.
The VFF described the reserve as a “practical and welcome” step after a period of volatility and diesel supply concerns.
Acting president Peter Star said reliable fuel access was critical, warning the sector cannot function without it.
“Securing this vital diesel reserve is a practical and welcome move that gives farmers greater confidence after one of the most volatile periods in recent memory,” Mr Star said.
However, the VFF cautioned the reserve is only part of a larger solution, with farmers still facing high input costs and ongoing seasonal pressures.
“Fuel security is essential, but it’s only one piece of the puzzle,” Mr Star said.
It is also pushing for greater on‑farm fuel storage and additional federal support to strengthen long‑term resilience.
Victoria joins Western Australia as one of the few states with a dedicated fuel reserve, a move both government and industry say will help safeguard regional communities and keep farms operating during uncertain times.
The announcement comes as the Federal Government also secured new fuel reserves, announcing a federal fuel reserve of about one billion litres.
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