The federal government will release an extra 800 million litres of petrol and diesel from domestic reserves as petrol prices across Australia rise above $2 a litre following escalating conflict involving Iran, the US and Israel.
Some regional areas have reported fuel shortages.
The government has also relaxed fuel quality standards to boost supply.
Changes aimed at easing pressure at the pump
Fuel companies will be allowed to keep less petrol and diesel in storage, meaning more will flow to pumps across the nation, particularly outside major cities, Energy Minister Chris Bowen said.
The extra fuel will not flow immediately due to supply chain complexities.
“It’s not like they can just press a button and get fuel out the door, but it will make a difference going forward,” he told reporters in Sydney on Friday after the government’s National Security Committee met.
The government has also relaxed quality standards for the next 60 days, allowing the use of fuel with higher sulphur levels to boost the domestic market by 100 million litres of petrol per month.
Quality levels would remain very high by international standards, the government said.
Broader energy security discussions
Resources Minister Madeleine King is travelling to Japan for talks with international counterparts at the Indo-Pacific Energy Security Forum to discuss fuel supply and demand issues.
“I’m hoping to achieve good discussions about where everyone else is sitting in addressing the fuel supply or demand issues they’re facing in their countries,” she told ABC News on Friday.
Ms King said boosting supplies of critical minerals and rare earths — used in electric vehicle batteries, smartphones and sensitive defence technologies — would also be discussed.
