Speaking in parliament last week, Katter claimed the issue of fuel security was being ignored at a state level and it was time stop "avoiding the elephant in the room - that is, ethanol or biofuels."

A recent interim review by the federal government released in April found Australia has less than 58 days of net fuel stocks, well below the 90 days required by the International Energy Agency.

Concerns over fuel security has been growing as geopolitical forces put pressure on demand, and should a war break out in the Middle East, Australia could find itself in a tricky position navigating imports.

Katter claimed to have the answer, calling on the government to introduce a 10% ethanol blend fuel, which he believes will bring down the price of fuel as well as guarantee security.

"There are two to three weeks of fuel supply. Every other country - the other 63 countries in the world - all mandated ethanol, and that is one of the primary reasons why they have fuel security," Katter said.

"It certainly is one of the primary drivers in the US so it has fuel security. It reduces car tailpipe emissions by 30%, so it is akin to taking 30% of cars off the road in Australia."

"There is a solution sitting there, but it needs to be driven by government at a state and federal level," he said.

Katter said the government couldn't rely on oil and gas operators in Australia, as they would "keep dancing around" the issue of fuel security and export petroleum resources.

"Just like when we moved from leaded petrol to unleaded petrol, unless companies are forced to do it, it is not going to happen, we will not have an industry and we will always be battling fuel security," Katter said.

The state of Queensland is already a leader in biofuels in Australia, and since 2017 has held a mandate which requires fuel retailers to sell minimum amounts of sustainable biobased fuel such as E10.

The government also has an established Biofutures roadmap with a vision of creating a biofuel industry worth $1.8 billion by 2035.

Katter's suggestion of introducing a 10% biofuel mandate across Queensland was greeted enthusiastically by the biofuel industry peak body, Bioenergy Australia, which earlier this year called for a national parliamentary inquiry into transitioning Australia from fossil fuels to biofuels.

"We absolutely agree [with Katter's comments]. Ethanol is a safe and highly effective octane enhancer, but it isn't used in this capacity in Australia and it absolutely should be," Bioenergy Australia chief executive Shahana McKenzie said.

"The introduction of 10% across the board would stimulate local industry and reduce our fuel security concerns without a doubt.

However introducing a 10% mandate across Queensland would not be easy, according to McKenzie, as it wouldn't just require legislation, but infrastructure development and a willingness from industry.

"It would take some cooperation from the oil industry. That is the largest barrier to the implementation of a greater level of biofuels in Australia," she said.

 Access to market is only achievable through distributors and biofuels do not have direct access to market. Our members are required to go through distributors in order for biofuel to make it to market."

The debate in Queensland follows a push by the US-based Renewable Fuels Association, which took a swing at federal energy minister Angus Taylor last month, urging the minister to "strongly consider" importing US ethanol instead of purchasing oil from the US Strategic Petroleum Reserve.

The federal government has been considering a deal with the US to acquire oil from the reserve in exchange for military support in the Strait of Hormuz to protect oil tankers from potential Iranian attacks.

 Under the deal Australia could draw upon the US Strategic Petroleum Reserve to overcome dwindling fuel stocks in return for sending vessels to the Persian Gulf as tensions in the oil transportation lanes rise.

But according to the RFA, opening the Australian market to ethanol imports would be better for the continent's economy and air quality, and would help spur more rapid development of a domestic biofuels industry.

In a letter addressed to Taylor, the association urged the government to choose ethanol supplies over petroleum fuels because ethanol could also "better protect Australian consumers from supply shocks."