Australia to temporarily ease fuel standards to boost supply

[PERTH] Australian Energy Minister Chris Bowen said on Thursday (Mar 12) that the country will temporarily relax fuel-quality standards for the next 60 days.

The move comes as the Iran war chokes oil supplies and sends prices soaring. It would increase the amount of sulphur permitted in fuel to 50 parts per million, higher than the usual 10 parts per million.

Under the relaxation, an additional 100 million litres of fuel a month will be allowed into the country, easing price pressures, with the fuel directed to regions where supplies are short, Bowen said.

The deal is with fuel refiner and retailer Ampol, which typically exports the higher-sulphur fuel.

“The redirected supply will be prioritised for the regions with shortages and the wholesale spot market that supports independent distributors and harvesters,” said the minister.

“The government has been unequivocal: This additional supply must help the people who need it, including farmers, fishers and regional communities.”

Bowen said Canberra’s discussions with the International Energy Agency (IEA) on its commitment to release an additional 400 million barrels of oil into the market were ongoing, but any oil released would remain within Australia’s domestic market.

He told the public-service broadcaster ABC that he had spoken to Fatih Birol, the executive director of IEA, the previous night.

“This is a voluntary action; the contribution Australia makes will be decided in our national interest,” he said.

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The last time the country contributed to an international IEA release was in 2022, when it sold the oil it held in the US Strategic Petroleum Reserve at a profit.

Australia has 36 days of petrol, 34 days of diesel and 32 days of jet fuel in reserve, the highest level in more than a decade, the minister told reporters on Mar 3. REUTERS