Every business that handles fuel or lubricants relies on safe, efficient storage. Whether you’re running a transport depot, agricultural enterprise, or mechanical workshop, your fuel and oil storage tank is central to daily operations. The right system protects staff, equipment, and the environment while keeping your operation compliant with Australian regulations.
This article explains how to assess your storage requirements, what types of tanks are available, and how to select the correct size and configuration to match your workflow.
View our range of tanks and systems here.
1. Why Proper Fuel and Oil Storage Matters
Oil and diesel are valuable resources — and potential environmental hazards if mishandled. Poorly designed storage can lead to contamination, spills, or fire risks that halt operations and result in costly penalties.
An efficient tank system ensures:
- Safety: Containment of flammable liquids and prevention of leaks.
- Compliance: Meeting Australian Standard AS1940 requirements for fuel and oil storage.
- Efficiency: Quick access for refuelling and fluid transfer.
- Longevity: Protection from corrosion and weather damage.
- A well-chosen tank improves productivity, reduces waste, and ensures peace of mind.
2. Understanding the Different Types of Storage Tanks
Storage tanks fall into several categories based on material, design, and application.
Basic steel or poly tanks that store smaller volumes of fuel or oil. They’re suitable for indoor or low-risk environments where external containment is already provided.
Known as diesel bunded tanks or self-bunded tanks, these feature an inner and outer wall with a containment cavity in between. If the inner tank leaks, the outer wall captures the spill. This design is mandatory for most above-ground installations and offers the highest safety level for workshops and fuel depots.
Compact polyethylene or steel tanks fitted with pumps and hoses. They’re perfect for field service, farm equipment, or temporary job sites that need mobility without sacrificing compliance.
Large-scale tanks such as a 20,000 L fuel tank provide high-capacity storage for fleets or industrial facilities. They are often permanently installed with integrated pumps, meters, and filtration systems.
3. Choosing the Right Capacity
Tank size should align with your operational demands while leaving room for safe expansion. Key factors include:
- Daily or weekly fuel usage: Multiply average consumption by the number of days between deliveries.
- Space availability: Ensure clearance for access, ventilation, and bunding requirements.
- Regulatory thresholds: Larger tanks may trigger additional safety or environmental obligations.
- Future growth: It’s often more cost-effective to plan for increased fuel or oil volume early.
- A workshop oil storage setup might only need 500–1,000 L, while a logistics yard could justify 10,000–20,000 L for continuous operations.
4. Materials: Steel vs Polyethylene
Steel tanks are highly durable, fire-resistant, and suitable for long-term outdoor storage. They handle both diesel and lubricants well, making them a favourite for commercial and industrial use.
Poly tanks are lightweight and corrosion-resistant, ideal for smaller oil or AdBlue® storage. They’re easier to move and install but should be UV-stabilised for outdoor exposure.
Many operators combine the two — poly for portable or specialty fluids, steel for core fuel and oil storage.
5. Workshop Oil Storage and Handling
In workshop environments, good oil management prevents contamination and waste. Multi-compartment tanks or modular oil storage systems allow separate containment for fresh and waste oils.
Best-practice workshop setups include:
- Gravity-feed or pumped dispensing through dedicated reels.
- Drip trays and spill containment to protect work surfaces.
- Labelled storage for each lubricant grade.
- Regular oil analysis sampling to ensure product quality.
Integrating storage with dispensing systems saves time and ensures technicians always have clean oil ready for use.
6. Compliance and Safety Requirements
Fuel and oil storage in Australia is governed by AS1940 – The Storage and Handling of Flammable and Combustible Liquids. Key considerations include:
- Bunding or secondary containment must hold at least 110 % of the largest tank’s capacity.
- Tanks must be positioned clear of ignition sources and have adequate ventilation.
- Electrical equipment in refuelling areas must be explosion-protected.
- Signage, grounding, and spill-response kits are mandatory.
- Waste oil must be stored separately and disposed of via licensed collection services.
- Following these standards protects both people and property while ensuring insurance compliance.
7. Maintenance and Inspection
Routine maintenance extends tank life and prevents contamination:
- Inspect seals, hoses, and valves for leaks.
- Drain water and sediment from diesel tanks periodically.
- Clean vent filters to maintain pressure balance.
- Repaint or re-coat steel tanks to prevent corrosion.
- Calibrate flow meters annually for accuracy.
- Regular visual checks and scheduled servicing should be part of your safety management plan.
8. Selecting the Right System for Your Operation
| Operation Type |
Recommended Storage |
Typical Capacity |
Key Benefit |
| Mechanical workshop |
Bunded oil tank or modular oil storage |
500 – 2,000 L |
Clean, separated lubricant storage |
| Transport depot |
Self-bunded fuel tank |
10,000 – 30,000 L |
Bulk on-site refuelling |
| Agriculture / farming |
Mobile diesel pod or trailer |
5,000 L + |
Field mobility |
| Industrial plant |
Fixed steel bunded tank |
20,000 L + |
High-volume, permanent supply |
Matching tank type and capacity to your business reduces refuelling delays, keeps records consistent, and improves compliance.
Investing in the right fuel and oil storage tank is essential for safe, efficient, and compliant operations. From small workshop oil tanks to large bunded fuel systems, each design serves a distinct purpose — storing vital resources securely while supporting productivity.
By understanding your daily usage, regulatory obligations, and available space, you can confidently choose a storage solution that fits your business now and scales with you in the future.
Aflo’s comprehensive range of oil and fuel storage systems combines proven safety, durability, and convenience — delivering long-term reliability for workshops, farms, and industrial sites across Australia.