Australia will temporarily relax fuel standards to boost domestic supply by 100 million litres monthly, targeting shortages in rural areas.
SYDNEY: Australia will temporarily adjust its fuel quality standards for approximately two months to increase domestic supply.
Energy Minister Chris Bowen announced the move on Thursday, stating it would allow around 100 million litres of petrol per month that would otherwise be exported to be blended into the Australian market.
The government has prioritised support for farmers, fishers and regional communities experiencing supply issues.
Bowen confirmed that one of the country’s top refiners, Ampol, has agreed to redirect supply to regions with shortages and the wholesale market.
Treasurer Jim Chalmers acknowledged that while the country has “enough fuel”, specific supply problems exist, particularly in rural areas.
Chalmers told the national broadcaster ABC that the ongoing conflict in the Middle East “is already putting additional pressure on Australians”.
The government has previously blamed price-gouging by retailers for rising domestic fuel costs, which have spiked since the outbreak of war in the Middle East.
Global oil prices topped USD 100 a barrel again on Thursday after Iranian attacks on shipping effectively closed the Strait of Hormuz.
This followed US-Israeli strikes that killed Iran’s Supreme Leader Ayatollah Ali Khamenei.
The International Energy Agency said on Wednesday its member countries would unlock 400 million barrels of oil from their reserves to ease the war’s impact.
This coordinated release, the sixth in the IEA’s history, is the largest such action ever undertaken.
Australia, an IEA member, has stated its contribution from reserves will be focused on the domestic market.
