Australia is moving quickly to boost fuel supply as global disruptions linked to the Iran war heighten fears of shortages in a country that depends heavily on imported fuel. With stockpiles well below international standards, the government is acting to protect critical sectors such as mining and agriculture from potential panic buying and supply interruptions. On 13th March 2026, authorities announced plans to release petrol and diesel from domestic reserves in an effort to stabilise supply chains and address shortages that have begun affecting rural areas. The move is designed to boost fuel supply and ensure fuel availability as geopolitical tensions ripple through global energy markets.
Officials said that relaxing the baseline stock obligation for petrol and diesel could free the equivalent of roughly 5 million barrels of oil. Australia currently consumes about 1 million barrels a day, highlighting the urgency behind the decision to boost fuel supply amid tightening conditions. Energy Minister Chris Bowen also confirmed that the government will temporarily loosen fuel quality standards for 60 days, allowing higher-sulphur fuels into the market. This measure is expected to unlock about 100 million litres of additional fuel a month, further helping authorities boost fuel supply during the disruption.
Despite recent improvements, Australia continues to lag far behind the International Energy Agency (IEA) requirement that member nations maintain at least 90 days of fuel stocks. The country has missed that benchmark for more than a decade. Bowen said on March 3 the country’s domestic reserves hold 36 days’ worth of petrol, 34 days of diesel and 32 days of jet fuel the highest levels in more than 10 years but still short of the target.
Analysts and policy groups have long argued that stronger fuel security measures are needed. The Australian Strategic Policy Institute (ASPI) has repeatedly called for action, while experts note that expanding stockpiles would likely raise costs.
Supply concerns are particularly acute in remote regions where fuel storage is limited. Farmers welcomed the government’s decision, with the National Farmers’ Federation urging officials to prepare targeted protections should fuel security deteriorate. Meanwhile, large iron ore miners in Western Australia’s Pilbara rely on billions of litres of diesel annually, underscoring the importance of stable supply. Australia now operates only Viva Energy’s Geelong plant and Ampol’s Lytton facility after a series of refinery closures, including BP’s 2021 shutdown of its Perth refinery, which removed the west coast’s last refining capacity.
