The Australian Government has briefly relaxed the nation’s unleaded fuel standards in a bid to increase supply, brought about by concerns of a potential shortage due to the current conflict in the Middle East.
From this week, the sulphur limits in unleaded petrol sold in Australia is rising from 10 parts per million (ppm) to 50ppm for the next two months, allowing an estimated 100 million litres of new fuel supply each month.
According to the ABC, this is equivalent to approximately two days’ worth of unleaded petrol, which will come from redirected locally refined oil being put into our domestic supply, rather than being exported.
There should be no concerns about the new higher-sulphur fuel being used in modern vehicle engines, as until December last year the sulphur limit for unleaded petrol in Australia was 150ppm, three times higher than the new briefly-relaxed figure.
“The Government’s focus is ensuring our fuel gets to where it needs to go,” Minister for Climate Change and Energy, Chris Bowen, said in a media release.
“In order to assist with getting more supply, and secure downwards pressure on prices, I am temporarily amending Australia’s fuel quality standards to allow higher sulfur levels for the next 60 days.
“This will allow around 100 million litres a month of new petrol supply that would otherwise have been exported to be blended instead into Australian domestic supply.
“In return, Ampol Australia has committed to ensure this redirected supply will be prioritised for regions of shortage and for the wholesale spot market that supports independent distributors and harvesters.
“While Australian fuel consumption has not changed, this will help relieve pressure on distribution chains disrupted by elevated demand.”
The new Australian-refined fuel being injected into the local supply will come from Ampol’s refinery in Brisbane, with the extra two days’ worth of petrol adding to the existing 36 days of supply.
As reported by the ABC, Australia currently holds 29 days’ worth of jet fuel and 32 days’ worth of diesel.
However, there have been reports of diesel shortages due to stockpiling in rural and regional areas, something which the new relaxed standards won’t change due to it only affecting the petrol supply.
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