Australia releases petrol, diesel and other emergency reserves

Australia announced on Friday that it would release petrol and?diesel from its reserves to help counter disruptions?to the fuel?supply?chain?from the Iran?war and ease shortages?in many regional parts of Australia.

Energy Minister Chris Bowen stated that the decision to release up to 20% from the baseline minimum stockholding requirement is equivalent to "up to 762 millions litres" of petrol and diesel.

Bowen's office said that it will take time to get the fuels from regional storage areas to where they are needed through Australia's "long and complex supply chain".

"We continue to see ships arriving in our ports." The report said that a 'huge spike in demand' has caused local shortages to occur in many regions of Australia. Imports would be further impacted if the Middle East conflict continues.

According to the government, the reduction in the minimum stockholding requirement could equal?5,000,000 barrels of crude oil. Australia uses around 1 million barrels of oil per day.

Bowen, on March 3, told reporters Australia had the most petrol in its reserves in a decade.

This is still well below the 90-day holdings that members of the International Energy Agency are supposed to maintain.

Bowen stated on Friday that the release was part of 'Australia's contribution' to 'the IEA commitment' to release 400 million barrels to the market in order to ease supply concerns.

(source: Reuters)