Explanatory Statement
Issued by the authority of the Minister for Climate Change and Energy
Fuel Quality Standards Act 2000
Fuel Quality Standards (Petrol) 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 (Petrol) 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 (Petrol) Determination 2024 (the 2024 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 2024 Determination to make a temporary and targeted change to the maximum sulfur content for all grades of petrol supplied in Australia in response to an urgent fuel supply situation. These temporary updates include:
- increasing the sulfur specification to a maximum of 50mg/kg for all grades of petrol supplied in Australia for a limited period between the day the Determination commences and 31 May 2026; and
- after 31 May 2026, reducing the sulfur specification to a maximum of 40mg/kg for all grades of petrol supplied in Australia for a limited period between 1 June 2026 and 31August 2026; and
- beginning on 1 September 2026, reducing the sulfur specification to a maximum of 10mg/kg for all grades of petrol supplied in Australia on an ongoing basis.
These changes are intended to enable additional petrol supplies, which would otherwise not comply with the existing standards, to be supplied in Australia during the period of a supply disruption.
The amended sulfur specification is temporary, proportionate and directed at maintaining the continuity of petrol supplies, particularly in affected markets and regions. They do not affect the broader operation of the fuel quality standards framework.
Background
On 12 March 2026, the Minister for Climate Change and Energy (the Minister) publicly announced that Australia will temporarily amend its fuel quality standards to temporarily allow higher sulfur levels in order to assist with supply, relieve pressure on disrupted distribution chains and secure downwards pressure on prices. The Minister stated that this arrangement will allow around 100 million litres a month of new petrol supply that would otherwise have been exported to be blended instead into Australian domestic supply. The announcement is freely available online at https://minister.dcceew.gov.au/bowen/media-releases/securing-more-fuel-australias-regions. The announcement set out that Ampol Australia has committed to ensure this redirected supply will be prioritised for regions of shortage and for the wholesale spot market that supports independent distributors and harvesters.
The amendments in the Determination support the Minister’s announced measure in response to the current fuel disruptions. The Determination is intended to facilitate the supply of additional petrol 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 seek further advice from the Fuel Standards Consultative Committee if any extension of these arrangements is necessary, which may be by a further legislative instrument to amend the 2024 Determination.
In making the Determination, the Minister had regard to the objects of the Act, including:
- The quality of fuel that would be supplied in Australia under the Determination, and the fact that the amendments result in a temporary increase of the sulfur limit in petrol.
- The level of pollutants and emissions arising from the use of fuel that may cause environmental and health problems. While the temporary increase in the sulfur limit in petrol may lead to a short-term rise in certain pollutants and emissions, the duration is strictly limited and is proportionate to the supply disruption. The increased sulfur limit operates within a controlled, time‑bound framework that preserves the overarching objective of environmental and public health protection.
- Facilitating the adoption of better engine technology and emission control technology and allowing the more effective operation of engines. The Determination will not limit the effective operation of engines. Under the Determination petrol supplied will be equal to or more stringent than the maximum sulfur limits that applied prior to 15 December 2025.The period of variation to the sulfur limit of petrol is brief and does not materially impede the introduction of newer, cleaner vehicles into the Australian market. Vehicle manufacturers and importers can continue to transition to advanced technologies, supported by certainty that the long‑term sulfur limit of 10 mg/kg in petrol will resume after the temporary periods.
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 16 March 2026, prior to making the Amendment 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, petrol that could otherwise be directed into domestic supply would not meet the requirements of the 2024 Determination and therefore could not be lawfully supplied. The temporary amendments are intended to address this problem which would otherwise create an imminent risk of reduced fuel 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 (Petrol) Amendment Determination (No. 1) 2026
Section 1 – Name
Section 1 provides that the name of the instrument is the Fuel Quality Standards (Petrol) 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 (Petrol) Determination 2024
Item 1 – Section 5 (table item 17)
Item 1 of Schedule 1 to the Determination replaces table item 17 under section 5 of the Fuel Quality Standards (Petrol) Determination 2024.
In particular, it provides temporary amendments to the maximum sulfur content for all grades of petrol supplied in Australia, including:
- increasing the sulfur specification to a maximum of 50mg/kg for all grades of petrol supplied in Australia for a limited period between the day the Determination commences and 31 May 2026; and
- after 31 May 2026, reducing the sulfur specification to a maximum of 40mg/kg for all grades of petrol supplied in Australia for a limited period between 1 June 2026 and 31 August 2026; and
- beginning on 1 September 2026, reducing the sulfur specification to a maximum of 10mg/kg for all grades of petrol 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 (Petrol) 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 (Petrol) Amendment Determination (No. 1) 2026 (the Legislative Instrument) is to amend the Fuel Quality Standards (Petrol) Determination 2024 (the 2024 Determination) to make a temporary and targeted change to the maximum sulfur content for all grades of petrol supplied in Australia. The amendments repeal and replace the current 10 mg/kg maximum sulfur specification for petrol that has been in place since 15 December 2025 by determining the maximum sulfur specification to be:
- 50 mg/kg maximum between the day the Legislative Instrument commences and 31 May 2026;
- 40 mg/kg maximum between 1 June 2026 and 31 August 2026; and
- 10 mg/kg maximum beginning on 1 September 2026.
This has the effect of temporarily increasing the maximum allowable sulfur content of petrol, enabling petrol 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