Australia has announced on Friday that it would release petrol and diesel from its domestic reserves to help counter disruptions to the fuel supply chain from the Iran war and ease shortages in many regional parts of the country.
Energy Minister Chris Bowen said the move to allow the release of up to 20 per cent of the baseline minimum stockholding obligation is equivalent to up to 762 million litres of petrol and diesel.
A statement from Bowen’s office said it would take time for the fuels to move through Australia’s “long and complex supply chain” from where they are stored in regional areas to where it is needed.
"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," it said.
The government said that relaxing the minimum stockholding obligation could be the equivalent of 5 million barrels of oil. Australia's total oil use is around 1 million barrels per day.
On March 3, Bowen told reporters that Australia had 36 days of petrol, 34 days of diesel, and 32 days of jet fuel in reserve, the highest level in more than a decade.
That is, however, still far below the 90 days' holdings International Energy Agency members are supposed to have.
Bowen said on Friday the release was part of Australia's contribution to the IEA's commitment to release 400 million barrels of oil to market to ease supply concerns.
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