Government extends higher-sulphur petrol period by four months in cautious response to opening of Hormuz
Energy Minister Chris Bowen has announced a four-month extension to allow higher levels of sulfur in Australian oil to address the fuel crisis.
This policy was implemented as the US-Iran war began to have a negative impact on fuel prices and supplies in early March.
The extension announcement on Saturday follows news that the Strait of Hormuz is expected to reopen and return to global shipping after its extension to the end of September. Before the start of the war on February 28, approximately one-fifth of the world’s oil supply was transported through the Bosphorus.
“I have decided to extend the high sulfur period for oil in Australia,” Mr Bowen said.
“As you know, early in this crisis I increased the minimum allowable standard from 10 parts per million to 50 parts per million by the end of May.
“Despite the positive developments overnight, international uncertainty remains and we continue to face pressures in the international supply chain.
“I’ve now extended that period until the end of September… and then a period until December 31st where the fuel can continue to be blended into a wider mix at a lower rate.”
According to the NRMA, the introduction of high sulfur diesel into the Australian supply chain means that oil that would not normally be considered standard can now be bought and sold in Australia to supplement fuel supplies.
Typically oil in Australia contains only 10 parts per million (ppm) of sulfur, but is now allowed to contain 50 ppm.
More to come
