Australia releases 762 million liters of fuel from reserves amid rural shortages

Australia is releasing 762 million liters of petrol and diesel from its national reserves to ease supply shortages affecting farmers and rural communities, the government announced. The move comes a day after authorities temporarily relaxed fuel quality standards, allowing unleaded petrol with higher sulfur levels—normally exported—to be mixed with local supplies.

Environment Minister Chris Bowen said the country currently has sufficient fuel, but warned that rising demand and regional instability could put further pressure on supplies, Caliber.Az reports via foreign media.

“We continue to see expected ships arrive in our ports. However, a huge spike in demand has led to local shortages in many parts of regional Australia, and imports will come under further pressure should the conflict in the Middle East continue,” Bowen said in a statement on March 13.

Rural residents, who rely heavily on independent retailers sourcing diesel from spot markets, have been hit particularly hard by the shortages.

In Batlow, a small town west of Canberra, the only service station reportedly ran out of fuel earlier this week. Local lawmaker Joe McGirr said the station owner closed rather than sell at “exorbitant prices,” leaving the community waiting for relief.

Australia’s fuel release will contribute to a global effort by the International Energy Agency, which announced plans this week to release 400 million barrels from emergency stockpiles—the largest release in the agency’s history. The Australian release represents about five million barrels of that total.

By Sabina Mammadli