Explanatory Statement
Issued by the authority of the Minister for Climate Change and Energy
Fuel Quality Standards Act 2000
Fuel Quality Standards (Conventional Diesel) Amendment Determination (No. 1) 2026
Legislative Authority
The Fuel Quality Standards Act 2000 (the Act) provides the legislative framework for regulating the quality of fuel supplied in Australia. The objectives of the Act are to reduce the level of pollutants and emissions arising from the use of fuel that may cause environmental and health problems, facilitate the adoption of better engine and emission control technology, allow the more effective operation of engines, and ensure that, where appropriate, information about fuel is provided when the fuel is supplied.
Section 21 of the Act provides that the Minister may, by legislative instrument, determine a fuel standard in respect of a specified kind of fuel.
The Fuel Quality Standards (Conventional Diesel) Amendment Determination (No. 1) 2026 (the Determination) is made for the purposes of the relevant provisions in section 21 of the Act.
In making the Determination, the Minister had regard to the objects of the Act and consulted the Fuel Standards Consultative Committee in accordance with section 24A of the Act.
The Determination amends the Fuel Quality Standards (Conventional Diesel) Determination 2025 (the 2025 Determination). Under subsection 33(3) of the Acts Interpretation Act 1901 (Acts Interpretation Act), where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Purpose and operation
The purpose of the Determination is to amend the 2025 Determination to make a temporary and targeted change to the minimum flash point temperature for conventional diesel and conventional diesel/paraffinic diesel blends supplied in Australia in response to an urgent fuel supply situation. The temporary update:
- Reduces the flash point requirement for conventional diesel and conventional diesel/paraffinic diesel blends supplied in Australia from 61.5°C to 60.5°C for a limited period between the day the Determination commences and 30 September 2026.
- Reverts the flash point back up to 61.5°C for conventional diesel and conventional diesel/paraffinic diesel blends supplied in Australia on an ongoing basis beginning on 1 October 2026.
These changes are intended to enable additional supplies of conventional diesel, which would otherwise not comply with the specification in the 2025 Determination, to be supplied in Australia during the period of a supply disruption.
The amended flash point specification is temporary, proportionate and directed at maintaining the continuity of diesel supplies, particularly in affected markets and regions. The temporary adjustment to the flash point limit is expected to help ensure reliable diesel supply during a period of international volatility. The change does not affect the broader operation of the fuel quality standards framework.
Background
Flash point refers to the temperature required before a spark will ignite a fuel. It is included in the 2025 Determination as a safety parameter and does not impact on vehicle operability or emissions. A temporary lowering of the flash point parameter will facilitate the additional supply of diesel in Australia through:
- Australian refiners being able to incorporate more of their jet fuel fractions into the diesel supply stream; and
- importers having more flexibility to purchase diesel on the open market for the purposes of import into Australia.
In addition, reducing the flash point from 61.5°C to 60.5°C does not change how diesel is classified or regulated under the Australian Dangerous Goods Code (available at https://www.ntc.gov.au/codes-and-guidelines/australian-dangerous-goods-code). Diesel would continue to be treated the same way for transport, with no change to safety requirements.
The flash point was previously lowered to 60.5°C in 2020 for Caltex Australia Petroleum Pty Ltd and Mobil Oil Australia Pty Ltd through the Notice Under Section 17A of the Fuel Quality Standards Act 2000 - Approval for variation of Fuel Quality Standards (Automotive Diesel) Determination 2019 (2019 Notice). This was an approval under section 13 of the Act granted in response to a reduction in demand for jet fuel due to COVID-19 (the 2019 Notice is available at https://www.legislation.gov.au/C2020G00472/asmade/text). This change allowed the relevant refiners to blend jet fuel stocks with diesel stocks during a time of lowered jet fuel demand. No adverse impact on the interests of consumers, or on public health and safety were identified as a result of this approval.
The Determination is intended to facilitate the supply of additional diesel to the Australian market for a limited period, in order to mitigate the risk of fuel shortages, including in regional areas, while maintaining the broader operation of the fuel quality standards framework. The Government will consider the international supply situation and consult with the Fuel Standards Consultative Committee if any extension of these arrangements is necessary, which would be by a further legislative instrument to amend the 2025 Determination.
In making the Determination, the Minister had regard to the objects of the Act, including:
- The quality of the fuel that would be supplied in Australia under the Determination.
- The level of pollutants and emissions arising from the use of fuels that may cause environmental and health problems. The temporary decrease in the flash point of diesel would have no impact on the level of pollutants or emissions arising from the use of the fuel.
- Facilitating the adoption of better engine technology and emission control technology and allowing the more effective operation of engines. The Determination will have no impact on the ability to adopt better engine technology or emission control technology arising from the use of the fuel, nor the effective operation of engines.
- Facilitating information about the fuel being shared when the fuel is supplied. The Determination will not change the existing information requirements. No additional consumer information obligations will arise because of the temporary diesel flash point amendment.
Consultation
Subsection 24A(1) of the Act provides that the Minister must consult the Fuel Standards Consultative Committee (Committee) prior to making a determination under section 21. In accordance with subsection 24A(1), the Minister consulted with the Committee on 23 March 2026, prior to making the Determination. The Committee comprises representation from the Australian Government, all states and territories, fuel producers, consumer groups, and environmental bodies.
The Committee unanimously supported the Determination. Given the urgent and time critical nature of the fuel supply circumstances addressed by the Determination, immediate action was necessary to maintain fuel supply and reduce the risk of fuel shortages. As such, further consultation was not undertaken prior to making the Determination.
Without the amendments, diesel that could otherwise be directed into domestic supply would not meet the requirements of the 2025 Determination and therefore could not be lawfully supplied. The temporary amendments are intended to address the risk of reduced diesel availability in the Australian markets.
Details
Details of the Determination are set out in Attachment A.
Other
The Determination a legislative instrument for the purposes of the Legislation Act 2003 (the Legislation Act).
The Determination is subject to the disallowance process under section 42 of the Legislation Act and the sunsetting regime set out in Part 4 of Chapter 3 of the Legislation Act.
The Determination commences on the day after it is registered.
A Statement of Compatibility with Human Rights is in Attachment B. The Determination is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Authority: section 21 of the Fuel Quality Standards Act 2000.
Attachment A
Details of the Fuel Quality Standards (Conventional Diesel) Amendment Determination (No. 1) 2026
Section 1 – Name
Section 1 provides that the name of the instrument is the Fuel Quality Standards (Conventional Diesel) Amendment Determination (No. 1) 2026 (the Determination).
Section 2 – Commencement
Section 2 provides for the Determination to commence on the day after it is registered.
Section 3 – Authority
Section 3 provides that the Determination is made under section 21 of the Fuel Quality Standards Act 2000.
Section 4 – Schedules
Section 4 provides that each instrument that is specified in a Schedule to the Determination is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Determination has effect according to its terms.
Schedule 1 – Amendments
Fuel Quality Standards (Conventional Diesel) Determination 2025
Item 1 – Section 6 (table item 10)
Item 1 of Schedule 1 to the Determination replaces table item 10 under section 6 of the Fuel Quality Standards (Conventional Diesel) Determination 2025.
In particular, it provides temporary amendments to the minimum flash point for conventional diesel and conventional diesel/paraffinic diesel blends supplied in Australia, including:
- reducing the flash point specification to a minimum of 60.5°C for conventional diesel and conventional diesel/paraffinic diesel blends supplied in Australia for a limited period between the day the Determination commences and 30 September 2026; and
- beginning on 1 October 2026, increasing the flash point specification to a minimum of 61.5°C for conventional diesel and conventional diesel/paraffinic diesel blends supplied in Australia on an ongoing basis.
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Fuel Quality Standards (Conventional Diesel) Amendment Determination (No. 1) 2026
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The purpose of the Fuel Quality Standards (Conventional Diesel) Amendment Determination (No. 1) 2026 (the Legislative Instrument) is to amend the Fuel Quality Standards (Conventional Diesel) Determination 2025 (the 2025 Determination) to make a temporary and targeted change to the minimum flash point specification for conventional diesel and conventional diesel/paraffinic diesel blends supplied in Australia. The amendments repeal and replace the current 61.5°C minimum specification by determining the minimum flash point to be:
- 60.5°C minimum between the day the Legislative Instrument commences and 30 September 2026; and
- 61.5°C minimum beginning on 1 October 2026.
This has the effect of temporarily decreasing the minimum flash point specification of conventional diesel and conventional diesel/paraffinic diesel blends, enabling diesel supplies, which would otherwise not comply with the existing standards, to be supplied in Australia to support additional supply.
Human rights implications
This Legislative Instrument provides a technical and regulatory measure concerned with fuel specification and market supply arrangements. It does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon. Chris Bowen MP
Minister for Climate Change and Energy