Australia releases six days' worth of petrol and five of diesel from emergency stockpile

Australia will make available about six days' worth of petrol from its emergency stockpile and five days of diesel, the first use of its fuel reserves since the invasion of Ukraine in 2022.

Australia currently holds 36 days' worth of petrol supply, 29 days' worth of jet fuel and 32 days' worth of diesel, according to the latest data.

Energy Minister Chris Bowen said the fuel would not flow immediately due to the complexities of supply chains, but it would give fuel retailers flexibility to manage their supply.

"The minimum stock obligation which was introduced … for this purpose, [for] the rainy day, is now necessary," Mr Bowen said.

"There is a war. I think war ticks the boxes of crisis."

Reserves for petrol and diesel already sit above the minimum requirements established by the government in 2023.

Mr Bowen's intervention reduces the minimum diesel reserve from about 2.7 billion litres to 2.2 billion litres, and minimum petrol reserves from about 1 billion litres to 700 million litres.

However, stocks of both petrol and diesel are currently above the minimum reserve amount — with just under 3 billion litres of diesel and 1.6 billion litres of petrol in reserve.

The minister said he was in conversations with fuel companies to ensure the release of emergency reserves flowed first to regional Australia, and reductions in their requirements to hold fuel would be on the condition of regional communities being prioritised.

Australia contributes to unprecedented release of oil

The flow of fuel is part of an international commitment by the 32 member countries of the International Energy Agency, which on Thursday jointly agreed to an unprecedented release of 400 million barrels worth of oil in the hopes of stabilising prices and guaranteeing supply.

Yesterday the federal government also relaxed fuel quality rules in order to bring on an additional 100 million litres of petrol a month for the next two months, adding about two days' worth of extra fuel into supply.

A doubling of demand induced by fears of short supply has led to actual crunches in some areas — including for diesel, which yesterday's announcement did not address.

Prices have risen sharply amid uncertainty over Iran's blockade of the Strait of Hormuz in the Middle East, which has choked about a fifth of the world's oil supply.

On Friday afternoon the consumer watchdog however issued a "please explain" to the industry after finding widely varying fuel prices across capital cities.

"We know that many consumers are doing it tough and are frustrated by the rapid changes they have seen. We expect petrol retailers to explain to us and the Australian public how they have arrived at their prices," commissioner Anna Brakey said.

The Australian Consumer and Competition Commission last week wrote to 7-Eleven, Ampol, BP, Chevron, Mobil, United Petroleum, Viva Energy and EG seeking urgent information about recent price increases.

It says further clarification is required, and a meeting with fuel market participants will be convened for next week.

"Fuel companies should be open and honest about the reasons for such widely varying and rapid increases across the country and treat their customers fairly," Ms Brakey said.

"We urge petrol retailers to explain their positions to the Australian community."

The ACCC found prices among capital cities had been highest in Darwin and lowest in Canberra, but across the country retail petrol prices had increased almost instantly with the lift in wholesale prices, rather than following the usual lag of about a week.

Perth experienced the largest increase in prices between February 20 and Wednesday, March 11, with an average lift at the bowser of 59.5 cents per litre.

The watchdog added it had concerns about petrol and diesel availability in some regional areas, and would begin monitoring 190 regional locations from next week.

'Fuel supply is secure': Bowen

Mr Bowen said fuel supply was continuing to arrive to Australia as scheduled.

"When we say fuel supply is secure, that's what we say, that's what we mean, that's the facts," he said.

"That doesn't mean Australians in regional areas haven't faced real shortages because demand has been so high."

Opposition Leader Angus Taylor accused Mr Bowen of being "asleep at the wheel".

"Chris Bowen was in denial, he told us our fuel supplies were secure. By the end of the week, by yesterday, we heard that we had a national crisis," Mr Taylor said.

"I have been hearing from my constituents and others around Australia about their inability to get fuel supplies, farmers, truckers and others."

Mr Bowen said the government was carefully managing fuel demand and supply.

"I want Australians to have access to the fuel they need, not more, not less," the minister said.

He dismissed the suggestion fuel might have to be rationed.