Source : Perth Now news
Energy Minister Chris Bowen has announced a four-month extension to allow higher levels of sulphur in Australia’s petrol to address the fuel crisis.
The policy was introduced as the US-Iran war began having a detriment on fuel prices and supplies in early March.
Saturday’s announcement of an extension till the end of September follows news the Strait of Hormuz is expected to be reopened, allowing a return to global shipping.
Before the start of the war on February 28, about a fifth of the world’s oil supply was shipped through the Strait.
“I’ve decided to extend the period of higher sulphur for petrol in Australia,” Mr Bowen said.
“As you know, early in this crisis I lifted the allowed minimum standard from 10 parts per million to 50 parts per million until the end of May.
“Despite the positive developments overnight, this international uncertainty is continuing and we continue to face pressures in the international supply chain.
“I have now extended that to the end of September … and then a period to the 31st of December where that fuel can continue to be blended into the broader mix at a lower rate.”
According to the NRMA, the introduction of higher-sulphur diesel into the Australian supply chain means petrol which would otherwise not be considered up-to-standard can now be purchased and sold in Australia in order to bolster fuel supplies.
Typically, petrol in Australia only contains 10 parts per million (ppm) of sulphur, but is now allowed to include 50 ppm.
The Energy Minister also provided a brief update on the Geelong oil refinery fire, saying he felt “confident” the complex would be running at a significantly increased capacity in the near future.
“We have now assessed today that the Geelong refinery is working at 80 per cent capacity for diesel and jet fuel, and 60 per cent capacity for petrol,” Mr Bowen said.
“I spoke to the chief executive of Viva this morning. They’re working through the weekend and intend to update the Australian people on Monday,” he said.
“I’m confident diesel and jet fuel will return to normal levels quite quickly.
“I’m confident that diesel and jet fuel will return to more normal levels quite quickly, and petrol will take a little bit longer.”
Mr Bowen also provided a general update on the fuel supply situation in Australia, calling the situation “encouraging”.
Australia currently has 46 days worth of petrol on hand, with a 31-day supply of diesel and a 30 day supply of jet fuel.
“These figures are more than we had at the beginning of the Iran conflict,” Mr Bowen said.
“We have 10 days more petrol than we had when this international crisis began.”
Mr Bowen also confirmed that 61 cargo ships loaded with fuel were on their way to Australia.
