Australia Relaxes Diesel Rules for Six Months

Australia’s federal government has temporarily adjusted a national diesel specification as fuel shortages continue to disrupt supply at service stations across multiple states.

Energy Minister Chris Bowen said on Tuesday that the diesel flashpoint requirement will be lowered for a six-month period, a move intended to broaden the range of diesel that can be imported into the country.

What changed

The technical threshold for diesel’s flashpoint will be reduced from 61.5°C to 60.5°C for six months.

Bowen said the adjustment is designed to expand the pool of eligible imports, including supplies from markets where diesel can be produced to slightly different burning-temperature specifications such as the United States , Canada , and Europe .

Where shortages are showing up

Fuel availability problems have persisted despite earlier steps aimed at lifting supply. In New South Wales , 164 service stations reported having no diesel, while 289 reported being out of at least one fuel type.

Queensland also reported disruptions, with 55 stations without diesel and 35 missing regular unleaded petrol. Victoria , South Australia , and Western Australia were also cited as having many outlets with shortfalls, although no counts were provided.

Policy context and supply constraints

The diesel specification change follows an earlier, time-limited easing of petrol standards that lasted 60 days . That earlier measure was intended to add 100 million litres of petrol to the domestic market.

The latest decision indicates that the earlier petrol-focused step did not fully remove supply pressure, with diesel now a central constraint for transport, logistics, and consumers.

Import outlook, costs, and uncertainties

Analysts said Australia has about three weeks of confirmed fuel imports remaining. Separately, key Asian suppliers have been cutting petrol production, tightening regional availability.

Major refineries in Singapore and Taiwan have reduced output by more than 10% since the start of conflict, contributing to six canceled shipments and expectations of further disruption. With fewer regional cargoes available, Australian importers have been purchasing higher-priced fuel from the United States to cover gaps.

It is not yet clear how quickly the revised diesel specification will translate into additional deliveries, or whether refinery constraints and shipping disruptions will continue to limit supply during the six-month window.