The Federal Government has relaxed fuel standards, with ‘dirty fuel’ set to hit tanks as Australians battle imposing fuel costs.
The federal minister for energy Chris Bowen recently announced the Australian Government were easing fuel standards, meaning less refined fuel could be released into the market for consumer use.
The decision was made with the aim to relieve people of elevated fuel prices and ease fears of a fuel shortage, with the lowered standards authorised for a period of 60 days, set to end in May.
Fuel suppliers will be able to sell higher sulphur unleaded petrol in Australia, reverting back to standards that were in place in 2025.
Those elevated standards were legislated in 2024 to bring Australia up to pace with other leading nations.
The term ‘dirty fuel’ in the Australian context commonly refers to petrol with higher sulfur content than the previously introduced fuel standards allow.
Higher sulphur levels are worse for engines because sulphur oxides, which form during combustion, can combine with water vapour and condensation to form sulphuric acid, which corrodes engine components over the long term.
The Government said that the introduction of the less-refined fuel would not harm engine motors in the short term and would not impact greenhouse gas emissions, although it could affect the air quality where it is burned.
RAA fuel expert Peter Nattrass said Australia has high fuel quality standards that align to the requirements of global automotive manufacturers.
“The Government tightened fuel standards in December 2025 for the first time in many years,” he said.
“With the current crisis, the temporary 60-day relaxation effectively returns those standards to where they were prior to those changes.
“In these unprecedented times, RAA supports the Australian Government as it works to secure the fuel supplies that are required to keep Australia moving.”
