Investing.com — The Australian government has extended a temporary relaxation of fuel-quality standards until September, a move designed to bolster domestic supply as the nation continues to navigate the logistical fallout from the conflict in Iran.
Energy Minister Chris Bowen confirmed in televised remarks on Saturday that the government will continue to allow higher sulfur content in petrol, increasing the permitted threshold to 50 parts per million from the standard 10 parts.
The extension comes as Australia, which remains heavily dependent on fuel imports, grapples with localized shortages caused by global supply chain disruptions now entering their eighth week.
The decision follows efforts by Prime Minister Anthony Albanese to shore up national energy reserves, including a recently secured supply deal with Malaysian energy giant Petronas.
Australia’s measures, coupled with diplomatic missions to Singapore and Brunei, underscore the government’s drive to prevent mandatory fuel rationing.
Despite the broader supply concerns, the operational status at the fire-damaged Geelong refinery, owned by Viva Energy (ASX:VEA), appears to have stabilized.
Bowen reported that the facility is currently operating at 80% capacity for diesel and jet fuel, and 60% for petrol, levels that have remained consistent since late last week.
Government officials have maintained that the situation is being managed, with Prime Minister Albanese asserting that the refinery fire and current import pressures will not trigger formal fuel restrictions.
However, market participants remain focused on how long the waiver on fuel standards will remain necessary, as persistent logistical bottlenecks in the wake of Middle East turmoil continue to weigh on the Asia-Pacific energy market.
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