The Federal Government will release up to 20 per cent of the baseline minimum stockholding obligation, injecting an additional 762 million litres of diesel and petrol into the domestic market.
Speaking on Friday, March 13, Mr Bowen also confirmed that fuel quality standards would be temporarily relaxed for 60 days, allowing higher sulphur fuel to be sold.
This change is expected to add a further 100 million litres of fuel per month to available supply.
The announcement came as the escalating conflict in the Middle East continued to place pressure on global fuel markets.
In Australia, demand in regional areas has surged, outstripping available supply and leaving some bowsers empty.
The released fuel reserves will be targeted specifically at regional, agricultural and maritime customers, sectors that rely heavily on diesel to operate.
The government acknowledged that fuel would take time to move through the supply chain, from reserves to the regional communities where it was needed.
NFF president Hamish McIntyre welcomed the announcement, describing it as necessary for regional Australia.
“This is an important step by the government that acknowledges the shortages being experienced in regional Australia,” Mr McIntyre said.
“We will continue working closely with our members and the government to understand the exact composition of this release and ensure the fuel is reaching the regional communities and industries that need it most.”
The government is urging consumers to avoid stockpiling or hoarding fuel, and to take only what is needed.
Meanwhile, the Victorian Government announced last week the introduction of daily fuel price caps, aimed at preventing price gouging amid ongoing volatility.
Under the new system, fuel retailers will be required to set a maximum price for each day, with penalties applying to businesses that attempt to exceed the cap.
19°C