Australia Eases Fuel Standards for 60 Days Amid Iran War

Australian Energy Minister Chris Bowen announced on Thursday that the government will temporarily relax fuel quality standards for the next 60 days to address supply disruptions caused by the ongoing war in Iran. The measure allows sulphur levels in fuel to rise from the usual 10 parts per million to 50 parts per million, enabling an additional 100 million litres of petrol to enter the domestic market each month.

The decision responds to global oil supply chokeholds from the conflict, which has halted shipments through the Strait of Hormuz and driven international benchmark prices above $100 a barrel. Australia, which imports about 85 to 90 percent of its refined fuels from refineries in Singapore, South Korea, Japan and Malaysia, faces heightened risks from these disruptions. Domestic refining capacity has dwindled to just two operational facilities, the Geelong refinery in Victoria and the Lytton refinery in Queensland, leaving the country vulnerable to delays in long-distance sea routes across the Indian Ocean and Southeast Asian chokepoints.

Under the temporary rules, higher-sulphur fuel produced at the Ampol refinery in Brisbane, typically destined for export, will be...