Australian fuel reserves rise to pre-Iran war levels
Sydney (18 May)
Australia has more petrol, diesel, and jet fuel in storage than it did on 28 February – the day the US-Israeli war in Iran began – because of consistent contracted imports and Government-backed spot purchases.
The country had 44 days’ worth of petrol reserves, 36 days’ worth of diesel reserves, and 35 days’ worth of jet fuel reserves on 16 May, Australian Energy Minister Chris Bowen said at a press conference on the day.
Its fuel reserves are up from 36 days’ worth of petrol, 32 days’ worth of diesel, and 29 days’ worth of jet fuel in late February.
Australian fuel distributors have locked in contracts for an additional two billion litres of diesel, 760 million litres of petrol, and 326 million litres of jet fuel over the next four weeks, Bowen said.
“Australia remains steady at Level Two in our National Fuel Security Plan … It is our goal, of course, to remain at Level Two, as I’ve said many times, but we do live in a volatile world.” Prime Minister Anthony Albanese said earlier in the press conference.
Australia’s fuel reserve increase is a result of close government and corporate collaboration, Bowen said. The Government has underwritten 700 million litres of spot-market fuel purchases since the Iran war began.
The Government announced its latest batch of fuel underwrites on 15 May. It has helped Ampol, Viva Energy, and IOR secure 150 million litres of diesel to support customers in South Australia, Tasmania, Queensland, and Victoria, multiple Ministers said in a joint statement.
IOR will deliver 50 million litres of diesel to regional customers across Queensland and South Australia in early July with Government support, the company said on 15 May.
“We will leverage our regional network to ensure volumes are distributed efficiently and equitably to the communities and sectors that depend on reliable fuel supply,” IOR CEO Drew Morland said.
IOR’s Government-backed diesel purchases come just over a week after it agreed to set up a 10 million litre diesel reserve with the South Australian Government to support primary producers.
The SA Government can choose to store up to 20 million litres of diesel at the reserve, Premier Peter Malinauskas said at a press conference on 10 May. But SA’s government will not compete with the Federal Government or farmers to purchase fuel, the Premier added on social media.
Diesel prices in New South Wales averaged A$2.38/litre in May 2026, up from A$1.83/litre in February, largely because of the Iran war.
They peaked at A$2.86/litre in April but have declined since, partly because the Australian Government cut the country’s fuel excise rate from A$0.53/litre to A$0.21/litre for three months in early April.
But the Government has not made a decision on whether to extend the excise cut beyond 1 July, Prime Minister Albanese said on 16 May.
By Avinash Govind