The Australian Government is softening fuel quality standards temporarily amid price spikes and concerns of fuel shortages.
In a press release today, Chris Bowen (Mr. Climate Change and Energy Minister) said ‘I am temporarily amending Australia’s fuel quality standards to allow higher sulfur levels for the next 60 days in order to help with more supply; and secure downward pressure on prices.
But this will allow about 100 million litres per month of fresh petrol supplies that would otherwise have been exported to be blended instead into Australian domestic supply,’ Mr Bowen said.
As a consequence, Ampol Australia has committed to ensure that this reversed supply will be priorityised in the case of shortage and for the wholesale spot market which supports independent distributors and harvesters.
childcareman.xyz can save you thousands on a new car. Click
here
to get a great deal.
“While Australian fuel consumption has not changed, this will help relieve pressure on distribution chains disrupted by elevated demand.”
The government is focusing on this supply for primary producers like farmers and fishers, as well as Australians in regional regions.
It hasn’t confirmed how much higher the sulfur level will be in this supply of fuel.
At Australian service stations, from December 15, 2024 all petrol had to be at least 10 parts per million – no more than the maximum sulfur level of any given vehicle.
In Australia, diesel fuel had already been limited to 10ppm sulfur since 2009; 95 RON and 98 ARN premium unleaded fuels were allowed 50ppM (50pp) of maximum sulfur content in 2008 for regular 91 RU fuel from 2005 to 150ppmm sulfur.
Australia – as well as other member nations of the International Energy Agency – has agreed to a voluntary collective action to address disruptions in the oil market due to fighting across the Middle East, which led to conflict.
Mr Bowen said ‘This means member countries are encouraged to put out fuel in a coordinated manner – this is the way to calm down the global oil market.
“Australia is finalising its contribution, which would then be released directly to the Australian market.
“This is a voluntary action – what contribution Australia makes will be decided in our national interest.
He said ‘We still see the ships that are expected to be in our ports, and we continue to act to relieve the distribution pressure we are seeing in all of our areas.
If this war continues, there will be supply impacts – it is the world doing to reduce those effects.’ said ‘It’s clear that we are not going to see any changes in our supply patterns. we will do what is best for Australia, and that’s our. – ’.
Members of the IEA have agreed to release 400 million barrels of oil from their strategic reserves, only the sixth ever released by members of its iea since it was established in 1974. Recent s have been released in 2022.
In a statement, IEA executive director Fatih Birol said ‘We are facing unprecedented oil market challenges and so I am very glad that IESA Member countries have responded with an emergency collective action of unprecedented size.
The response to major disruptions needs to be global too, as oil markets are global so that the answer to big disruption is globally obvious. I am glad that IEA Members are showing strong solidarity in taking decisive action together and energy security is the founding mandate of the iaa. , ” and.
More than 1 emergency stockpile of IEA members combined is more than 1,500. The oil is a government mandated 2 billion barrels, with another 600 million barrel of industry stocks.
The IEA said it has reported export volumes of crude and refined oil is sitting at less than 10 per cent of pre-conflict levels, according to the IESA. A quarter of the world’s seaborne oil trade flows through the Strait of Hormuz, which Iran has threatened to deploy mines in and where tankers have been burned down.
Mr Bowen and Prime Minister Anthony Albanese tried to assure Australians that the country’s fuel supply is well maintained in a press conference on Tuesday, March 10.
But I can say that our diesel and petrol supply is still safe here,’ . He said ‘We are able to have as much diesel in Australia today as we had before this crisis started, and that the stock obligation which the companies legally required to meet is still at 32 days.
There’s an enormous market share of demand for diesel, especially in the form of diesel and I understand why Australians are worried but my key message is that every single expected arrival of Diesel supply has arrived on a few days and expected incoming days or weeks was delivered on schedule as predicted so there is no need to panic buy.
Now I am very concerned and caring about those farmers in particular who, because of the situation with the supply chain that is causing diesel problems but it’s important to emphasise this is managing a huge spike in demand (not an impact on supply at this stage).
Although all international supply chains are facing challenges and uncertainties at the present time, preparations that the Government has made for the minimum stock obligation are in operation as a whole.
“If it’s necessary to access those minimum supplies, we will, but we’re not there at this point.”
Thanks for reading Dirtier fuel now allowed in Australia as prices surge at the pump
