Strait of Hormuz blockade forces Australia to lower diesel standards amid deepening fuel shortages

Business, International, Politics

INTERNATIONAL (NPA) — March 24, 2026 — Australia has temporarily lowered its diesel standards for six months in a bid to ease nationwide fuel shortages, as hundreds of petrol stations report running out of key fuel types.

Energy Minister Chris Bowen confirmed that the “flashpoint” for diesel has been reduced from 61.5 to 60.5 degrees Celsius, a move designed to expand supply options from international refiners in the United States, Canada, and Europe. He stressed that the adjustment would have no impact on engines or emissions, while giving Australian refineries greater flexibility to meet demand.

The decision comes amid mounting pressure on fuel reserves following instability in global energy markets linked to the war in the Middle East. Bowen revealed that 20 per cent of the country’s fuel reserve has already been released, but six scheduled shipments for April were cancelled, forcing reliance on alternate sources.

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Latest figures show widespread shortages: in New South Wales, 164 stations are without diesel and 289 without at least one fuel type; Queensland has 55 stations without diesel and 35 without unleaded; Victoria reports 162 stations with outages; South Australia has 46 affected, while Western Australia and Tasmania report smaller disruptions. The Northern Territory and ACT remain unaffected, though flooding has impacted supply in some areas.

Reports of informal rationing have emerged, with service stations limiting purchases or restricting jerry can refills. The government has urged Australians to buy only the fuel they need, while the opposition has launched a website, nofuelhere.com.au, to collect community reports of shortages.

Shadow ministers have called for biofuels to be prioritised as a backup supply, while truck drivers are set to receive new protections under amendments to the Fair Work Act to shield them from rising costs.