Australia has temporarily lowered its diesel standards in an effort to boost supply as hundreds of service stations run dry. Energy Minister Chris Bowen announced on Tuesday that the flashpoint threshold for diesel would be reduced from 61.5°C to 60.5°C for six months, allowing imports from markets such as the US, Canada, and Europe.
The move follows a 60-day relaxation of petrol standards, which is expected to add 100 million litres to the local market. However, shortages persist, with at least 164 service stations in New South Wales out of diesel and 289 missing at least one fuel type. Similar shortfalls are reported in Queensland, Victoria, South Australia, Western Australia, and Tasmania.
Analysts warn that Australia has only three weeks of assured fuel imports, as Asian suppliers cut production. Tom Woodlock of Argus Media noted that two major refineries in Singapore and Taiwan have reduced output by over 10% since the war began, with six shipments already cancelled. Sushant Gupta of Wood Mackenzie added that Asian fuel production could fall by 20% or more if refiners lose access to Middle Eastern oil, potentially forcing shutdowns.
The federal government is seeking alternative sources, including longer-haul imports from the US and Europe. Australian importers have already ordered more expensive fuel from the US. State premiers have called for a nationally coordinated response, with New South Wales Premier Chris Minns suggesting possible measures such as rationing or working from home. Opposition figures have proposed a fuel excise cut, but Treasurer Jim Chalmers has ruled this out.
