Australia will keep in place a temporary relaxation of fuel-quality rules until September, Energy Minister Chris Bowen announced on Saturday. In televised remarks, Bowen said he had decided to prolong the period during which higher sulphur levels are permitted in petrol.
The policy, first announced in March, allows petrol to contain up to 50 parts per million of sulphur, up from the standard 10 parts per million. The government has advanced the measure as it manages the effects of supply disruptions tied to the Iran war, which entered its eighth week on Saturday and has interrupted international fuel supply chains.
Australia imports the majority of its fuel requirements and has seen localised shortages as a result of those disruptions, Bowen said. He also provided an update on output at a fire-hit oil refinery in Victoria owned by Viva Energy, noting production figures had not changed since Friday.
Specifically, Bowen said the Geelong refinery continued to operate at reduced rates: 80% capacity for diesel and jet fuel and 60% capacity for petrol. Those capacity levels were unchanged from the previous day, he added.
Prime Minister Anthony Albanese, speaking on Friday, said the refinery fire would not prompt any formal fuel restrictions. Separately this week, Albanese secured an arrangement with Malaysian state energy firm Petronas to supply excess fuel to Australia. The agreement follows official trips to Singapore and Brunei that were aimed at strengthening energy supplies.
The government has framed the sulphur limit relaxation as a temporary, supply-supporting measure while disruptions persist. Bowen's extension runs through September, maintaining the higher allowable sulphur concentration in petrol that was introduced in March.
Contextual note: Reporting focused on the government's decision, the stated reasons for it, and the operational status of the Geelong refinery as described by officials. No additional operational figures or further details on the duration of disruptions were provided beyond the extension to September and the stated capacity rates for diesel, jet fuel and petrol.