The Australian government on Saturday extended a measure aimed at ensuring fuel security by allowing the release of petrol and diesel from domestic reserves.
According to a statement by Energy Minister Chris Bowen, the country was extending its temporary relaxation of the baseline Minimum Stockholding Obligation for petrol and diesel for a further three months.
By reducing the obligations of fuel companies to maintain minimum stocks by 20%, the country expects to free up 762 million liters of petrol and diesel through September, according to a Reuters report.
The government noted in its statement that fuel inventories have reached record levels in recent weeks as fuel shipments continue to arrive and demand normalizes. Additional supplies secured through Export Finance Australia have also strengthened the country's fuel security position.
However, it also warned that even if shipping were to resume in the Strait of Hormuz, "the return to normal of the global flow of fuels and goods will take months."
The statement said that since the relaxation was first introduced in March, it has helped ease supply pressures, while noting that with the latest extension, suppliers will be required to submit updated plans detailing how they plan to respond quickly to spikes in demand.