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Australia Eases Fuel Standards Amid War Disruptions
18 Apr
Summary
- Fuel quality standards relaxed until September to allow higher sulphur.
- Localized fuel shortages experienced due to disrupted supply chains.
- Prime Minister secured a deal with Petronas for additional fuel supply.
Australia has extended the temporary easing of its fuel quality standards until September, as announced by Energy Minister Chris Bowen on Saturday. This measure allows for a higher sulphur content in petrol, increasing the permitted level to 50 parts per million from the standard 10 parts.
The decision follows localized fuel shortages experienced across the country, which have been attributed to disruptions in global supply chains stemming from the ongoing Iran war. The refinery in Victoria owned by Viva Energy continues to operate at reduced capacity.
Prime Minister Anthony Albanese previously stated that a fire at the Geelong refinery would not lead to fuel restrictions. This week, Albanese also secured a fuel supply agreement with Malaysia's Petronas, following diplomatic efforts in Singapore and Brunei to strengthen Australia's energy reserves.
