Canberra, Mar 12: The Government of Australia has announced a temporary adjustment to Australia fuel quality standards that will permit higher sulphur levels in petrol for about two months, a step aimed at increasing domestic supply and stabilising prices.
Energy Minister Chris Bowen said the measure would enable around 100 million litres of petrol each month to be redirected to the local market instead of being exported. The decision follows rising fuel costs triggered by geopolitical tensions in the Middle East.
According to Bowen, major refiner Ampol has agreed to divert additional supply to regions experiencing shortages and to the wholesale market. Priority will be given to essential sectors such as farmers, fishers and regional communities facing supply constraints.
Fuel markets have been under pressure as global oil prices climbed above $100 per barrel after escalating conflict in West Asia disrupted shipping routes through the Strait of Hormuz, one of the world’s most critical energy transit chokepoints.
Treasurer Jim Chalmers said Australia currently has adequate fuel reserves but acknowledged distribution challenges in certain rural areas. He added that the international crisis was already adding to the cost pressures faced by households.
Meanwhile, the International Energy Agency has announced a coordinated release of 400 million barrels of oil from member nations’ strategic reserves to help stabilise global supply. Australia, which relies heavily on imported oil, plans to direct its contribution primarily towards supporting its domestic fuel market.