Opposition Leader Angus Taylor has suggested a long-term plan to deliver at least one billion litres of new fuel storage, by building facilities around the nation.
A coalition government would provide the fuel sector with loans worth about $800 million to secure a two-month emergency stockpile, with a focus on diesel to support Australia's transport and logistics industries, Mr Taylor said.
But the private sector would likely have to pay far more.
"We think that that is a very reasonable insurance policy for Australians," Mr Taylor told reporters in Port Kembla on Tuesday.
Fuel companies are legally required to hold 27 days worth of petrol and jet fuel and 32 days of diesel as emergency stocks, in case of a global oil crisis like the present closure of the Strait of Hormuz.
That would be increased to 60 days under a coalition government, adding about one cent a litre to the cost at the bowser, Mr Taylor said.
Nationals leader Matt Canavan said the party's $800 million costing for the policy was only a starting point and the full price tag of increasing fuel stocks - to be borne by the private sector - would be much higher.
"We estimate that the total cost would be around $6 billion ... the (government) contribution would just help ease that," he told the ABC's AM program.
While the government would fund about one billion litres of fuel - around 10 days' worth - the remaining 2.8 billion litres would need to be funded by the fuel companies.
Mr Albanese blasted the plan, accusing Mr Taylor of having no credibility on the issue because of his role in offshoring Australia's fuel reserves.
"You've got to admire the the irony of Angus Taylor, who was the (energy) minister in a government where four out of six of our refineries shut and who thought the fuel reserves should be kept in Texas," he told reporters at parliament house.
"Of all the people in this building... there is none who has less credibility on fuel security than Angus Taylor."
In a shambolic media conference, shadow treasurer Tim Wilson accidentally claimed the coalition policy would cost $80 billion before consulting with an advisor and correcting himself.
Under the International Energy Agency's agreement, member countries including Australia are required to hold 90 days' worth of emergency oil stocks.
As at mid-April, Australia had 49 days of fuel stocks, according to the agency.
The Albanese government has previously said complying with the 90-day requirement would cost $20 billion.
Nations are allowed to store stocks outside of their borders and can count reserves held abroad as part of the requirement.
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