Australia's minimum stockholding obligation (MSO) is to be reduced for each company to which it applies, to ensure extra supply of gasoil and gasoline flows to regions experiencing shortages.
This will allow the release of up to 762mn litres (4.8mn bl) of gasoline and gasoil from Australia's domestic reserves, the government said. Australia's sales of gasoline and gasoil were 273,000 b/d and 578,000 b/d respectively in 2025.
The MSO for gasoil will be reduced from 2.7bn litres to 2.2bn litres, while mandated gasoline storage levels will be cut from 1bn litres to 700mn litres, energy minister Chris Bowen said on 13 March.
Altering MSO levels will form part of Australia's contribution to the IEA's global collective action to release 400mn bl, Bowen said. This comes a day after New Zealand announced it would release about 800,000 bl or six days' domestic supply as part of its efforts.
Bowen on 12 March announced a relaxation in fuel standards allowing Australian refiner Ampol to sell its gasoline domestically at 50ppm sulphur content, above the national standard of 10ppm for a 60-day period.
The firm has been exporting this gasoline while importing fuel that meets the new lower sulphur standard, ahead of its ultra-low sulphur fuels project coming on line in April-June this year.
Demand booms
But this release of gasoline is unlikely to alleviate shortfalls in regional areas where gasoil is more widely used in both industry and private transport.
Australia's refiners skew towards gasoline output, producing 101,000 b/d of gasoline and 79,000 b/d of gasoil in 2025.
Fuel demand has spiked in recent weeks due to the outbreak of the US-Iran war. This has led to reported shortfalls in Australia's regional areas which rely on smaller independent wholesalers for supply, far from terminals.
Mandated gasoil stock levels were last raised from 1 July 2025 to 32 days' cover for importers and 20 days for refiners Viva Energy and Ampol.
Weekly MSO reporting covers 10 companies for gasoil, eight for gasoline and six for jet fuel, with gasoil storage volumes increasing in the two years to mid-2025 due to government regulations.
Total stocks held under the MSO in 2024-25 were equal to 33 days' consumption for gasoil, 39 for gasoline and 31 for jet fuel, based on typical demand.
Australia has not been compliant with the IEA's 90-day net import coverage standard since 2012 when several local refineries closed. Meeting the 90-day rule would require investment of A$20bn ($14.2bn) according to Bowen, who said the MSO is sufficient to meet Australia's fuel needs.
