Fuel supplies in South Australia

The war in the Middle East has disrupted shipping of oil through a sea lane that normally carries about 20% of the world’s supplies. While shipment tracking indicates ongoing supply arriving in Australia and South Australia over the coming weeks, concern about supplies has resulted in some fuel users buying more diesel and petrol than usual. This change in demand can cause localised fuel shortages, often called ‘stockouts’, at some service stations.

Our fuel supply chain

Both crude oil and refined products are transported to Australia by ship. Australia also produces some fuel domestically in local refineries. Most petrol and diesel used in South Australia arrives via Port Adelaide.

Once unloaded, fuel is stored in fuel terminals before being distributed across the country by tanker trucks to service stations and industrial users.

Just under half of Australia’s fuel is sold through about 8,000 service stations across the country – including around 700 in South Australia.

South Australia’s strategic diesel reserve

The South Australian Government is establishing a strategic diesel reserve to boost the state’s fuel security and support our primary producers and other critical industries that rely on diesel.

The government is purchasing 10 million litres of diesel at IOR’s existing Port Bonython storage facility immediately, with the option to secure and store up to 20 million litres if required.

The South Australian diesel reserve will not replace or compete with national fuel reserves, but will instead provide an additional buffer if supply deteriorates.

National fuel reserves

Australia’s petroleum industry is required to keep specified volumes of petrol, diesel and jet fuel in reserve at all times. This is known as the minimum stockholding obligation and is designed to protect consumers and our economy from supply disruptions.

Learn more about Australia’s fuel reserves from the Department of Climate Change, Energy, the Environment and Water (DCCEEW) minimum stockholding obligation for liquid fuels: statistics.

Changes to fuel standards

To help increase fuel supply and keep fuel flowing where it’s needed, the Australian Government has temporarily adjusted petrol and diesel quality standards until 30 September 2026.

For petrol, a change to the allowable sulphur levels will enable an additional 100 million litres of Australian refined petrol to be supplied to the domestic market each month, instead of being sold overseas.

Diesel standards have also been adjusted, allowing a lower minimum flash point. This will open up additional international diesel supply options and support higher levels of domestic diesel production.

These measures are safe and will not harm vehicle engines, helping ensure Australians can continue to access fuel reliably.

Learn more about fuel standards at regulating Australian fuel quality (DCCEEW).