General News
19 March, 2026
Government releases diesel reserves
THE Federal Government has now included diesel in its latest decision to release roughly 762 million litres of fuel from domestic reserves and temporarily relax fuel quality standards for 60 days to boost supply.
The move, announced on Friday, followed criticism by opposition resources spokeswoman Senator Susan McDonald, who earlier in the week said that the government had not acted fast enough to ensure fair access to diesel so “farmers and producers can keep Australia fed”.
Sen McDonald, also Northern Australia spokeswoman, said regional areas were being hit hardest because the government initially had only released reserves for petrol which did nothing to increase diesel supply for farmers, truck drivers or regional industries.
The large fuel distributors had also “shut the gate” to independent outlets causing miners to ration diesel, and truckies reporting fuel prices up 50% in a week, trawlers tied up at wharves in Ingham, and some small towns left with no diesel.
She said other countries had acted fast following the conflict in the Middle East with measures such as making public servants work from home and shutting schools.
In Friday’s developments, the government said the latest moves were to directly address regional shortages and price spikes.
Energy Minister Chris Bowen authorised the release of about five days’ worth of diesel and seven days’ worth of petrol from government-held stocks to ease pressure.
Relaxed fuel standards would also allow lower-grade fuel with higher sulphur levels to be sold for 60 days to increase supply capacity.
The government would also continue to support the domestic supply of diesel exhaust fluid (DEF) (AdBlue) through 2026 and beyond, to keep heavy transport moving.
A $1.1 billion plan was also in place to boost sustainable fuel, aiming for domestic renewable diesel production by 2029.
While acknowledging fuel supplies could face further pressure, Mr Bowen ruled out a cut to the fuel excise or rationing fuel purchases.
He warned there was no need to stockpile or hoard fuel and the government would allow fuel companies to hold less in storage and get more into pumps across regional areas struggling with fuel shortages.
These were the stocks of fuel held in Australia, which must be maintained each week by bulk importers and refineries.
To avoid further market disruption, companies would only be allowed to relax their storage obligations if:
They are taking steps to prioritise supply to regional customers, with a focus for supply to regional, agricultural and maritime customers experiencing supply shortages
They are taking steps to allocate reasonable additional supply to bulk customers such as independent regional distributors
They are providing volumes needed to help meet usual demand, not to customers seeking to profiteer from global price spikes, panic purchasing or stockpiling with above normal quantities of fuel.
The ACCC was monitoring fuel retailers for potential price gouging following rapid price rises above $2 a litre in some regions. An example was in South Australia, last week, where the Royal Automobile Association reported the average price for diesel last Thursday reached $2.46 per litre – the highest on record and 16 cents higher than the previous October 2022 peak.
The ACCC warned fuel retailers needed to be honest with consumers, or risk steep fines.
In its first report on weekly pricing, the independent statutory government authority said between 20 February and 11 March, petrol and diesel price rises “varied widely” between Australian capital cities and in many cases increased as fast as wholesale prices.
The ACCC report also revealed petrol and diesel benchmark prices had increased more than international oil prices during the initial period of the Middle East conflict.
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