Australia to Release Strategic Fuel Reserves Amid Middle East Supply Concerns

Melbourne. Amid concerns that the ongoing conflict in the Middle East could disrupt supply chains, the Australian government has announced it will release 76.2 million liters of petrol and diesel from its domestic reserves.

Australia's Energy Minister Chris Bowen stated on Friday that the federal government will release up to 20 percent of the baseline level of the minimum storage obligation for petrol and diesel. According to him, this step will help manage disruptions seen in the fuel supply chain.

The government has decided to reduce the minimum national storage obligation for diesel from 2.7 billion liters to 2.2 billion liters, and the storage obligation for petrol from one billion liters to 700 million liters.

The decision is reported to be Australia's response to the request by the International Energy Agency to release fuel reserves.

According to Energy Minister Bowen, this will provide fuel companies with more flexibility to manage their supply chains. He clarified that this fuel would not be immediately released onto the market.

He stated that fuel supply in Australia is currently secure and that ships continue to arrive in the country despite the conflict in the Middle East. However, he noted that if the conflict continues for a long time, there is a possibility that future supply could be affected.

He mentioned that although the storage situation is good, the supply chain has faced pressure due to sudden, excessive increases in demand, especially in Australia's rural and regional areas.

He urged citizens not to hoard fuel unnecessarily, stating that although the international situation is serious, Australia's fuel supply is currently secure.

Earlier, Energy Minister Bowen had announced that the government would temporarily amend fuel quality standards to allow the use of higher sulfur content petrol for 60 days. This measure is expected to help make approximately 10 million liters of new petrol supply available per month.