Australian fuel reserves rise to highest level on record
Sydney (15 June)
Australia has more petrol, diesel, and jet fuel in the country than at any point since the Australian Government introduced minimum reserve requirements for importers and refiners in 2023.
The country has 45 days’ worth of petrol reserves, 39 days’ worth of diesel reserves, and 32 days’ worth of jet fuel reserves, Energy Minister Chris Bowen said on 13 June. Its petrol, diesel, and jet fuel reserves are up from a week ago.
Oil producers plan to deliver 3.5 billion litres of fuel – including petrol, diesel, jet fuel, and crude oil – to Australia over the next four weeks, Bowen said. But Bowen did not reveal the breakdown of planned fuel imports by type.
Refiners cut their planned Australian petrol deliveries over the two weeks leading to 6 June. But they increased their planned diesel and jet fuel deliveries over the same period.
Australia’s record fuel reserves come alongside reports of an imminent US-Iran peace deal, which could increase the flow of crude oil through the Strait of Hormuz.
“We are very close to a deal that will bring peace to the region, including to Lebanon, and all sides should stand down,” US President Donald Trump said early on 15 June, in response to Israeli bombings in Beirut.
“The deal is scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is [open to all],” Trump wrote early on 14 June.
The Government of Pakistan – which has brokered peace negotiations between Iran and the US since March – similarly expects the two countries to finalise a peace deal soon.
“Pakistan is preparing for the electronic signing of the peace deal immediately after [it is finalised], followed by technical-level talks next week,” Prime Minister Shehbaz Sharif said on 13 June.
Brent crude futures prices declined over the week to 12 June because of reported progress towards a peace deal. Brent crude futures last traded at $87.33/barrel on 12 June – before markets closed for the weekend – down from $97.81/barrel on 3 June and a recent high of $112.10/barrel on 18 May.
Domestic fuel prices also fell over the week to 10 June, partly because of recent Brent crude price movements, data from the Australian Competition & Consumer Commission (ACCC) show.
Retail diesel and petrol prices fell across every Australian state and territorial capital over that period, ACCC data show. Retail petrol costs have also dropped below pre-Iran war levels in six of Australia’s eight territorial capitals, but remain elevated in Perth and Hobart, according to the ACCC.
By Avinash Govind