The Australian Government introduced temporary changes to fuel quality standards in March 2026 to support fuel supply during a period of market uncertainty. The Government has decided to extend these temporary arrangements until 30 June 2027.
Temporary petrol standard changes
On 12 March 2026, the Minister announced a temporary increase in the sulfur limit in petrol to support domestic supply. Subsequent amendments allowed petrol to contain up to 50 parts per million (ppm) sulfur until 30 September 2026. A transitional limit of 40ppm then applied until 31 December 2026.
On 30 September 2026, the Australian Government extended the 40 ppm transitional limit until 30 June 2027. The extension responded to ongoing disruption in global oil markets. The 50 ppm limit ended as scheduled.
From 1 July 2027, all petrol supplied in Australia must meet the 10ppm sulfur limit.
The extended temporary increase will not affect how well engines work. Testing undertaken during the temporary amendments shows that average sulfur levels across Australia have stayed below 10 ppm. Only one region was slightly above 10 ppm limit and it was still well below the current temporary maximum of 40 ppm. From 1 October to 30 June 2027 petrol will still have to meet stricter sulfur limits than those in place before 15 December 2025.
Before December 2025, petrol could contain up to 150 ppm of sulfur. As the 10 ppm limit was introduced only recently, and the new temporary limit of 40 ppm remains well below the previous limit, we do not expect the temporary change to affect vehicles. Motorists should continue to use the fuel recommended for their vehicle.
The temporary petrol standard amendments are included in the Fuel Quality Standards (Petrol) Determination 2024(external link), available on the Federal Register of Legislation.
Temporary diesel standard changes
On 24 March 2026, the Minister announced a temporary reduction in the minimum flash point for diesel supplied in Australia. The minimum flash point was reduced from 61.5°C to 60.5°C until 30 September 2026. .
On 30 September 2026, the Australian Government extended the 60.5°C minimum flash point setting until 30 June 2027. The extension responded to continued disruption in global oil markets. It provides greater flexibility to source diesel imports and allows refiners to use more jet fuel fractions in diesel production. It does not change diesel’s classification under the Australian Dangerous Goods Code or transport safety requirements.
From 1 July 2027, all diesel supplied in Australia must once again have a minimum flash point of 61.5°C.
The change is set out in the Fuel Quality Standards (Conventional Diesel) Determination 2025(external link).
For more information see: https://www.dcceew.gov.au/climate-change/emissions-reduction/regulating-fuel-quality#toc_0
ACAPMA
