Australia releases strategic fuel reserves to address the impact of the Middle East situation

On March 14th, the Australian government announced that it will release approximately 6 days of gasoline and 5 days of diesel supply from emergency fuel reserves, marking the first use of the reserves since Russia's invasion of Ukraine in 2022. Energy Secretary Chris Bowen stated that this move aims to address fuel supply issues in the context of the Middle East conflict. Currently, Australia still holds approximately 36 days of gasoline, 29 days of aviation fuel, and 32 days of diesel inventory. This action is also part of the joint release of 400 million barrels of oil reserves by 32 member countries of the International Energy Agency, and the Australian government has temporarily relaxed fuel quality standards. It is expected to add an additional 100 million liters of gasoline supply per month in the next two months. International oil prices have recently risen rapidly due to the situation in the Middle East and the obstruction of shipping in the Strait of Hormuz, causing fuel supply shortages in some areas of Australia.