The Australian government will release up to 726 million litres of petrol and diesel from Australia’s domestic reserves as part of a series of interventions to stabilise the fuel market.
The move comes as the ongoing conflict in the Middle East puts unprecedented pressure on global energy corridors, sparking localised shortages and price spikes across regional Australia.
The federal government will relax the Minimum Stockholding Obligation (MSO) by up to 20 per cent. This allows fuel companies to draw from mandatory domestic reserves to target areas where supply chains are struggling.
Minister for Climate Change and Energy Chris Bowen said the government will allow fuel companies to hold less in storage and get more supply into regional areas.
The government has urged the public to remain calm, emphasising that there is no fundamental change in national consumption.
“There is no need to stockpile or hoard fuel – take what you usually need so that no one has to go without,” Bowen said.
The minister also confirmed a temporary 60-day amendment to fuel quality standards, permitting higher sulphur levels in petrol. This technical shift is expected to unlock an additional 100 million litres per month by allowing fuel originally intended for export to be diverted to the domestic market.
“While Australian fuel consumption has not changed, this will help relieve pressure on distribution chains disrupted by elevated demand,” Bowen said.
Western Australia takes action
In tandem with federal measures, WA Premier Roger Cook convened a Fuel Security Roundtable to address specific vulnerabilities in the state. While industry leaders assured the Premier that tankers continue to arrive at WA ports, a massive spike in panic buying has caused temporary dry spells at some regional pumps.
Following the roundtable, the government and industry agreed to a seven-point plan which includes prioritising fuel and fertiliser imports through WA ports and the use of high-efficiency road trains to accelerate delivery to the regions.
The state government will establish a weekly Industry Operational Group to monitor supply in real-time.
“I understand there is a lot of anxiety right now across the community about fuel security, and I want to assure Western Australians that my government is doing everything it can to address these concerns,” Premier Cook said.
“Western Australia has stared down global challenges before, and we will do what we need to do to keep WA strong.”
