Australia keeps fuel standards relaxed until September

Australia has extended temporary relaxations on fuel quality standards until September as it works to manage supply disruptions linked to the war in Iran, Energy Minister Chris Bowen said.

In a televised address, cited by Reuters, Bowen confirmed the continuation of the measure, which was first introduced in March to ease pressure on fuel availability.

“I have decided to extend the period of higher sulfur limits in gasoline in Australia,” he said.

The policy allows sulfur content in gasoline to rise to 50 parts per million, compared with the standard limit of 10 parts. The move is aimed at mitigating supply constraints in a country that relies heavily on fuel imports.

Australia has experienced localised shortages as the conflict in Iran disrupted global supply chains. Additional strain has come from a fire at a refinery operated by Viva Energy in the state of Victoria.

Bowen said output levels at the facility remain stable despite the incident. “The Geelong refinery is operating at 80% capacity for diesel and jet fuel production and 60% capacity for gasoline — the situation has not changed,” he noted.

Prime Minister Anthony Albanese said earlier that the refinery fire would not result in fuel rationing or supply restrictions.

As part of efforts to secure additional supplies, Albanese this week reached an agreement with Malaysia’s state-owned energy company Petronas to deliver surplus fuel to Australia. The deal followed visits to Singapore and Brunei aimed at strengthening the country’s energy security.

By Tamilla Hasanova