Date: March 12, 2026
Reporter: Mr Johnson
News Platform: Dalena Reporters
Australia has announced a temporary relaxation of its fuel quality standards in an effort to increase domestic supply as the ongoing Middle East crisis continues to disrupt global oil markets.
The decision, announced by Australia’s Minister for Climate Change and Energy, Chris Bowen, will allow petrol with higher sulfur content to enter the country’s domestic fuel market for a limited period. The measure is expected to remain in effect for about 60 days.
Under the temporary change, the allowable sulfur content in petrol will increase from 10 parts per million to 50 parts per million, enabling additional fuel supplies to be redirected into the Australian market.
Officials say the adjustment could make around 100 million litres of additional fuel available each month, helping ease shortages and stabilise prices during a period of heightened global energy uncertainty.
The extra fuel supply will largely come from petrol that would normally be exported. Instead, it will be redirected to domestic markets to help address supply pressures affecting several regions.
Bowen said the government expects the additional fuel to support farmers, fishers, and regional communities, which have been particularly affected by distribution challenges and rising fuel costs.
The policy change comes as global energy markets face major disruptions linked to escalating conflict in the Middle East, including attacks on oil infrastructure and shipping routes that have pushed oil prices sharply higher.
Australia, which relies heavily on imported fuel, has been monitoring the situation closely while working with the International Energy Agency (IEA) and other countries to stabilise global oil supplies.
Despite the challenges, the government says Australia currently holds fuel reserves of more than a month, including about 36 days of petrol and over 30 days of diesel and jet fuel, the highest level in more than a decade.
Authorities say the temporary change to fuel standards is part of a broader effort to protect supply chains, prevent shortages, and reduce price pressure as the global energy crisis continues to unfold.