March 12, 2026 | SUNTV Global Channel | News
The Australian government has temporarily lowered its fuel quality standards in a bid to boost domestic petrol supply as the ongoing Middle East conflict continues to disrupt global oil markets.
Officials announced on Thursday that the emergency measure, which will run for about two months, will allow petrol with higher sulphur content to be sold within the country. Authorities say the move could free up about 100 million litres of petrol every month for domestic use.
The decision comes as global fuel prices surge following escalating tensions in the Middle East, which have disrupted key oil supply routes and triggered fears of a global energy crisis.
Australia, which relies heavily on imported crude oil and refined fuel, has already begun to feel the effects of the conflict, with petrol prices rising sharply across the country.
Energy Minister Chris Bowen revealed that the government has reached an agreement with major fuel refiner Ampol to redirect petrol that was originally meant for export back into the Australian domestic market.
According to Bowen, the arrangement will help stabilise fuel supply, especially in areas already facing shortages.
“This will allow around 100 million litres a month of new petrol supply that would otherwise have been exported to be blended into Australian domestic supply,” he said.
The minister added that the additional fuel will be prioritised for critical sectors, particularly farmers, fishers and regional communities, where supply pressures are already being felt.
The supply concerns intensified after global oil prices surged above $100 per barrel following reports that Iranian attacks on shipping had effectively shut down the Strait of Hormuz, one of the world’s most important oil transit routes.
The attacks were reportedly carried out in retaliation for joint United States and Israeli strikes that killed Iran’s Supreme Leader Ali Khamenei, escalating fears of a wider regional war.
The closure of the strategic waterway — through which a large portion of the world’s oil supply passes — has sparked alarm across global energy markets.
Despite the growing tension, Australia’s Treasurer Jim Chalmers said the country currently has enough fuel reserves, although distribution challenges remain in some rural regions.
“This conflict in the Middle East is already putting additional pressure on Australians, and we understand that,” Chalmers said during an interview with the national broadcaster.
Meanwhile, the International Energy Agency (IEA) has announced that its member states will jointly release 400 million barrels of oil from their strategic reserves in an effort to stabilise the global market and ease the shock caused by the war.
The coordinated release represents the largest emergency oil release in the agency’s history and marks the sixth time such reserves have been deployed since the organisation was established following the 1973 global oil crisis.
The urgency of these measures reflects growing fears among governments that the conflict between Iran and the United States/Israel alliance could trigger severe fuel shortages and price spikes worldwide.
In a related development, a cargo vessel travelling through the Strait of Hormuz was struck by an unknown projectile on Wednesday, according to the United Kingdom Maritime Trade Operations (UKMTO).
The attack reportedly sparked a fire on board the vessel, forcing the crew to abandon ship and request emergency assistance.
Maritime authorities confirmed that the incident occurred in waters just north of Oman while the vessel was navigating the narrow but strategically vital shipping corridor.
Security analysts warn that further attacks on shipping in the region could deepen the global energy crisis and further disrupt international trade routes.
SUNTV Global Channel will continue to monitor developments in the Middle East conflict and its impact on global energy markets.
