PERTH: Australian Energy Minister Chris Bowen said on Thursday the country would temporarily relax fuel quality standards for the next 60 days as the Iran war chokes oil supplies sending prices soaring.
The move would increase the amount of sulphur permitted in fuel to 50 parts per million, compared to the usual 10 parts per million.
Under the relaxation, an additional 100 million litres of fuel a month would be allowed into the country, easing price pressures, he said, with fuel directed to regions where supplies are short.
The deal is with fuel refiner and retailer Ampol, which typically exports the higher sulphur fuel.
"The redirected supply will be prioritised for regions of shortage and for the wholesale spot market that supports independent distributors and harvesters,” Bowen said.
"The government has been unequivocal - this additional supply must help the people who need it, including farmers, fishers and regional communities,” Bowen said.
The minister said Canberra’s discussions with the International Energy Agency on its commitment to release an additional 400 million barrels of oil onto the market were continuing, but any oil released would remain within Australia’s domestic market.
He told the public service broadcaster ABC he had spoken to IEA Executive Director Fatih Birol the previous night.
"This is a voluntary action - what contribution Australia makes will be decided in our national interest,” Bowen said.
The last time Australia contributed to an international IEA release was in 2022 when it sold the oil it held in the U.S. 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, Bowen told reporters on March 3. - Reuters
