The Federal Government has released up to 762 million litres of petrol and diesel from domestic reserves as increased demand causes localised fuel shortages in parts of regional Australia.
The Federal Government has moved to increase fuel supplies into regional Australia amid heightened pressure linked to the conflict in the Middle East.
Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King says Australia continues to have secure supplies of petrol, diesel and jet fuel, but increased demand has contributed to shortages in some regional areas.
Speaking at a Committee for Economic Development of Australia event in Melbourne, King said the Government had authorised the release of up to 20 per cent of the baseline Minimum Stockholding Obligation for petrol and diesel.
The measure allows up to 762 million litres of fuel to be released from domestic reserves.
King said the Government was closely monitoring the movement of fuel across Australia to ensure supplies continued to reach the areas where they were needed.
“This morning, I convened a second meeting of the transport industry, including rail, road freight and logistics, maritime, aviation and fuel suppliers, to ensure continued visibility across the transport sector,” she said.
“While we remain well placed to withstand pressures on global supply related to conflict in the Middle East, we are closely watching to ensure fuel continues to flow to where it is needed.”
The Government has also temporarily amended Australia’s fuel quality standards for 60 days, allowing fuel with higher sulfur levels to enter the market.
King said the change would enable an additional 100 million litres of petrol supply each month.
Ampol Australia has also committed to prioritising redirected supplies for regions experiencing shortages and for the wholesale spot market.
The Australian Competition and Consumer Commission has been directed to increase its monitoring of fuel prices and investigate potential anti-competitive conduct in petrol markets.
The measures come as transport operators and other businesses contend with increased fuel costs and uncertainty surrounding international supply routes.
King said the Middle East conflict had highlighted Australia’s exposure to disruptions in global trade, aviation and shipping networks.
“For a country like Australia, which relies heavily on trade and long-distance transport links, these global disruptions matter,” she said.
“They affect the cost of goods. They affect the reliability of supply chains. And they ultimately affect the productivity of our economy.”
King said stronger domestic road, rail, port and airport networks would help Australian supply chains absorb future international disruptions.
“Productivity in the transport system is productivity for the entire economy,” she said.
