Australia’s fuel quality standards will be lowered to allow 100million litres of petrol to be redirected into regional areas struggling with shortages each month. 

The federal government is temporarily amending national fuel standards for the next 60 days, a move that allows higher sulphur levels so fuel destined for export can instead enter the domestic market.

Energy Minister Chris Bowen said the change will support independent suppliers and regions currently under supply pressure. 

‘This will allow around 100million litres a month of new petrol supply that would otherwise have been exported to be blended instead into Australian domestic supply,’ he said during a fiery Question Time on Thursday. 

‘Ampol Australia has committed to ensure this redirected supply will be prioritised for regions of shortage and for the wholesale spot market that supports independent distributors and harvesters.’

Bowen confirmed that the National Coordination Mechanism had been convened to tackle ‘supply chain issues and bottlenecks’.

Australia is also finalising its contribution to the International Energy Agency (IEA) action to release fuel reserves, which earlier this week agreed to the release of 400million barrels of oil from its 32 member countries.

‘Australia, like all IEA member countries, has endorsed a global collective action to relieve pressure and will support our work at home,’ Bowen said.

Chris Bowen (pictured) said the change would add 100million litres a month to fuel supplies

The change is set to target independent suppliers and regions facing supply pressure (file) 

‘Australia is finalising its contribution, which would then be released directly to the Australian market. 

‘This is voluntary action, what contribution Australia makes will be decided in our national interest.’ 

The Opposition grilled the government over fuel supplies after ministers repeatedly insisted the country is not facing a supply shortage. 

Bowen chastised Australians, saying there were was ‘no need for panic buying’. 

‘Not one single shipload of diesel, petrol or jet fuel to Australia has been interrupted,” the minister said earlier this week. 

Some have argued that panic‑buying – not a lack of stock – is driving demand. 

Bowen said Australia currently holds 36 days of petrol, 29 days of jet fuel, and 32 days of diesel. 

He then accused the Opposition of failing to grasp the global situation. 

‘It may have escaped members opposite, but there’s a war going on,’ he said.

‘Do I regard a war as a crisis? Yes, I do. Yes, I do, Mr Speaker.

‘Do I regard the implications of that war, Mr Speaker, when it comes to fuel internationally, as a crisis? Yes, I do.’