Australia to Tap Fuel Reserves Amid Supply Chain Disruptions
Australia will release part of its petrol and diesel reserves to counter supply disruptions caused by the Iran war, according to Energy Minister Chris Bowen. This move aims to ease fuel shortages, particularly in regional areas, by tapping up to 20% of the baseline stock, equivalent to 762 million litres.
Australia announced on Friday that it will release a portion of its petrol and diesel reserves to mitigate disruptions in the fuel supply chain stemming from the Iran war. This action is intended to alleviate shortages in several regional areas across the nation.
Energy Minister Chris Bowen emphasized that while the permitted release involves up to 20% of the baseline stock, about 762 million litres, the fuel's journey through Australia's intricate supply chain to areas of need will take time. Bowen highlighted ongoing shipping arrivals but noted that heightened demand has already precipitated local shortages, potentially worsening if Middle East tensions persist.
The government's decision equates to nearly 5 million barrels of oil, contributing to the International Energy Agency's broader initiative to release 400 million barrels to stabilize the market. Currently, Australia's oil reserves cover scarcely more than a month, falling short of the 90 days required by the IEA.
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