Australian Minister for Energy lowers fuel standards for 60 days amid rising oil prices, panic buying

2026, March 13

Australia

Chris Bowen, Australian Minister for Climate Change and Energy, allowed the usage of dirtier fuel with elevated sulfur content for 60 days, he announced on Thursday. As a part of the change, the oil refineries were required to prioritise supply to farmers in rural areas. This decision followed issues with oil exports caused by the ongoing Middle East conflict, as fuel prices rose rapidly to over A$2/L.

The lower quality oil was previously exported to countries with lower fuel standards. With the new temporarily changes in place, it would now be allowed to be used in Australia. One of the two oil refineries, Ampol, noted rural areas supply would be prioritised.

Additionally, Bowen announced Australia would release 100 million liters from its reserve oil supply per month, in response to a request from the International Energy Agency (IEA).

The issue appeared related to the growing demand while supply was essentially unchanged. As people stockpiled fuel, and the demand has doubled, there were concerns over panic buying by Australians. Prime Minister Anthony Albanese commented on longer term impacts of the situation on economics in Australia, talking with ABC Television on Thursday.

President of the National Farmer Federation commented noting the government regulation was direly needed in this situation as farmers and fishers were struggling to access fuel, especially in remote areas. He also noted that government should prepare strategies in case the situation 'deteriorates', mentioning access to diesel was a pre-requisite for the farmers running the agricultural areas, collecting crops, transporting crops, and providing food to the country.

In reserve, Australia had 36 days worth of petrol, 32 days worth of diesel, and 29 days worth of jet fuel, respectively. These fell short of the 90 days requirement under obligations for the IEA, of which Australia is a member. Opposition was calling on the government to ensure fuel security, ABC News reported.