Australia to allow lower fuel quality amid surge in petrol demand

Energy Minister Chris Bowen said Australia will temporarily allow lower-quality fuel for the next 60 days in response to soaring petrol demand, Report informs via 7NEWS.

Speaking in the House of Representatives on Thursday, Bowen said the government would relax fuel quality standards to allow higher Sulphur levels.

"This will allow around 100 million liters a month of new petrol supply that would otherwise have been exported to be blended instead into the Australian domestic supply," Bowen said.

"In return, Ampol Australia has committed to ensure this redirected supply will be prioritized for regions facing shortages and for the wholesale spot market that supports independent distributors and farmers."

Bowen said Australia currently had about 36 days of petrol supplies and 29 days of jet fuel, adding there was no need for panic buying.

Fuel demand has doubled since the start of the Iran war, he said.