The Albanese Government has temporarily made a minor adjustment to diesel standards, which will help suppliers bring more fuel into the domestic market for farmers, truckers and regional communities.
This six-month adjustment will lower what's known as the flashpoint for diesel, from 61.5 degrees Celsius, to 60.5 degrees Celsius, increasing diesel supply options from refiners and international sources.
In effect, Australian refineries will now have more flexibility for making diesel, and widen the markets from which we source diesel, including from the United States, Canada, and Europe, which allow diesel with lower flashpoints. This will give companies more flexibility and more options to adjust supply chains to manage disruption from the Middle East.
Flashpoint changes have no impact on engines or emissions. Australia typically has a slightly higher temperature flashpoint owing to our hotter climate however when the flashpoint was last lowered in 2020, we saw no adverse impact on engines or emissions.
This flashpoint change does not require any changes to storage or handling protocols.
The National Transport Commission and the Fuel Standards Consultative Committee, which includes Truck Industry Council, Federal Chamber of Automotive Industries and Australian Automobile Association have supported this change.
This builds on a range of work this Government has already delivered to shore up Australia's fuel security.
Since coming to office, we have taken steps to further protect consumers and our economy from supply disruptions, including:
- Delivering a domestic fuel reserve through a Minimum Stockholding Obligation, and releasing part of that to support regions experiencing shortages
- Maintaining sovereign refining capability through the Fuel Security Services Payment, with amendments to that framework at the end of last week to keep our refineries going
- Investing $1.1 billion in Low Carbon Liquid Fuels, so our refiners can modernise and make more fuels here
- Bringing diesel storage across the country to over 3.7 billion litres with over 90 diesel terminals
- Improving Australia's fuel quality and supporting refiners in this transition by delivering the Refinery Upgrades Program
- Working with industry to strengthen resilience of critical inputs to our fuel market through secure supply of diesel exhaust fluid and a national stockpile of technical grade urea
Because of this work Australia has entered this period of global uncertainty better prepared than ever before - significantly more energy secure than when we formed Government in 2022.
Today's announcement builds on these plans and ensures our nation's energy resilience during this period of increased uncertainty overseas.
