{"id":534841,"date":"2026-03-12T05:12:11","date_gmt":"2026-03-12T05:12:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/534841\/"},"modified":"2026-03-12T05:12:11","modified_gmt":"2026-03-12T05:12:11","slug":"fuel-standards-relaxed-to-add-100-million-litres-of-fuel-to-australian-supply","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/534841\/","title":{"rendered":"Fuel standards relaxed to add 100 million litres of fuel to Australian supply"},"content":{"rendered":"

Australian fuel standards will be eased for the next two months, bringing on an additional 100 million litres of domestic supply a month, or about two days’ worth of additional supply, as the country grapples with the Middle East War.<\/p>\n

Higher-sulphur fuel, which was restricted a few years ago, will again be allowed and blended into the Australian supply for the next 60 days, rather than exported.<\/p>\n

The change will enable Ampol’s refinery in Brisbane to also sell to Australia instead of only to overseas countries with lower fuel standards.<\/p>\n

Ampol has given an assurance the additional 100 million litres a month will be prioritised for regional and rural Australia and the spot market.<\/p>\n

Iran’s blockade of the Strait of Hormuz has choked the flow of about a fifth of the world’s oil, leading to a global shock and fears of shortages.<\/p>\n

Iran war live updates:<\/a> For the latest news on the Middle East crisis read our blog.<\/p>\n

A bout of panic buying has doubled fuel demand in recent days, despite the federal government’s assurances that there is sufficient supply.<\/p>\n

“Our fuel supplies continue to arrive, our fuel stocks continue to be strong,” Energy Minister Chris Bowen said.<\/p>\n

“While there are real challenges, because our fuel supplies are secure there is no need for panic buying.”<\/p>\n

\"A<\/p>\n

Chris Bowen says relaxed fuel standards will help secure the fuel supply, particularly for regional Australia. (AAP: Lukas Coch)<\/p>\n

Overnight the International Energy Agency, which includes Australia as a member, agreed to release an unprecedented 400 million barrels of oil in an effort to maintain stable flow of fuel and prevent further price surges.<\/p>\n

The federal government maintains that oil continues to flow to Australia and the nation’s reserves remain at about 30 days \u2014 though that amount is below the IEA’s expectation for member nations to keep at least 90 days’ worth of fuel reserves on hand.<\/p>\n

Australia currently holds 36 days’ worth of petrol supply, 29 days’ worth of jet fuel and 32 days’ worth of diesel.<\/p>\n

Australia’s voluntary contribution to the IEA effort is being determined.<\/p>\n

Pain at the pump as petrol climbs 17 cents a litre in a week<\/a><\/p>\n

New data has confirmed a significant rise in fuel costs, with the national average petrol price increasing 17 cents over the week to Sunday, to 198 cents a litre.<\/p>\n

Mr Bowen said farmers, fishers and regional communities would be the priorities for the additional supply brought on by relaxing fuel standards.<\/p>\n

“In rural and regional Australia, we continue to see unacceptable shortages, we continue to see supply chain constraints, and we continue to see a doubling of demand \u2026 demand has doubled, use has not,” Mr Bowen said.<\/p>\n

“This is a practical measure, 100 million litres of extra fuel each month, which will prioritised for regional Australia, with a particular emphasis on Queensland.”<\/p>\n

Fuel supply chain issues are being managed through the government’s National Coordination Mechanism, which brings together all levels of government with industry to smooth bottlenecks or identify gaps in supply.<\/p>\n

Drawn-out war will impact fuel prices, production, supply: PM<\/p>\n

Prime Minister Anthony Albanese said fuel supplies remained steady, though he warned an extended conflict would have consequences for Australia.<\/p>\n

“The longer the conflict in the Middle East goes on, obviously the more significant the impact will be on the global economy,” Mr Albanese said.<\/p>\n

“If [the Strait of Hormuz] shipping route remains effectively closed then that will have ongoing consequences for fuel prices, production, supply chains and of course an inflationary impact right around the world.<\/p>\n

“This is internationally a very challenging time \u2026 we’re working with industry, we’re working with the [National Farmers Federation], we’re making sure that we put in place all the appropriate measures to ensure there is fuel security in this country.”<\/p>\n

The National Farmer Federation’s president Hamish McIntyre said reports from its members indicated that farmers and fishers were increasingly struggling to secure fuel, particularly where independent retailers dominated a region.<\/p>\n

“Major fuel importers are prioritising supply to existing contract holders, rather than releasing fuel into the ‘spot markets’,” Mr McIntyre said.<\/p>\n

\"Hamish<\/p>\n

Hamish McIntyre said fuel supply issues would cause problems for food supply. (National Farmers Federation)<\/p>\n

He said the announcement of an additional 100 million litres of supply was a welcome first step, but the government needed to step out what the triggers would be for further action.<\/p>\n

“The government must be prepared to pull other available levers both now and if the situation continues to deteriorate,” Mr McIntyre said.<\/p>\n

“If farmers can\u2019t access diesel, they can\u2019t harvest crops, plant crops, or move food and fibre to market. We also have industries like dairy that need fuel to move product every single day.”<\/p>\n

The opposition has pressured the federal government to guarantee that Australia will not run out of fuel.<\/p>\n

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