Australia’s fuel quality standards will be temporarily relaxed to allow 100million litres of petrol to be redirected into shortage-stricken regional areas. 

The federal government will ease fuel standards for 60 days so higher‑sulphur petrol meant for export can be used locally instead. 

Energy Minister Chris Bowen said the move will support independent suppliers and regions currently under increased supply pressure. 

‘This will allow around 100million litres a month of new petrol supply that would otherwise have been exported to be blended into Australian domestic supply,’ he said during a fiery Question Time on Thursday. 

‘Ampol Australia has committed to ensure this redirected supply will be prioritised for regions of shortage and for the wholesale spot market that supports independent distributors and harvesters.’

Bowen confirmed that the National Coordination Mechanism had been convened to tackle ‘supply chain issues and bottlenecks’.

Australia is also finalising its contribution to the International Energy Agency (IEA) action to release fuel reserves, which earlier this week agreed to the use of 400million barrels of oil from its 32 member countries.

‘Australia, like all IEA member countries, has endorsed a global collective action to relieve pressure and will support our work at home,’ Bowen said. ‘This is voluntary action, what contribution Australia makes will be decided in our national interest.’

The Opposition grilled the government over fuel supplies after ministers repeatedly insisted the country is not facing a supply shortage this week. 

Bowen previously insisted that Australia’s fuel supply was secure and that those in capital cities should not panic buy.

‘I can say that our diesel and petrol supplies remain at this point secure,’ he told reporters at Parliament House on Wednesday. 

‘We have as much diesel in Australia today as we had before this crisis began, and the stock obligation, which the companies are legally required to meet, remains at 32 days.

‘We are seeing a big increase in demand particularly for diesel, and I understand why Australians are concerned.’

While he was technically correct, critics in the bush claim they have been shunned as all the fuel is directed towards the major centres.

Petrol stations in regional areas have resorted to limiting drivers to only $20 worth of fuel to ensure locals can fill up in an emergency.

Bowen on Friday said Australia currently holds 36 days of petrol, 29 days of jet fuel, and 32 days of diesel. 

He then accused the Opposition of failing to grasp the global situation. 

‘It may have escaped members opposite, but there’s a war going on,’ he said.

‘Do I regard a war as a crisis? Yes, I do. Yes, I do, Mr Speaker.

‘Do I regard the implications of that war, Mr Speaker, when it comes to fuel internationally, as a crisis? Yes, I do.’