Day 13 of Middle East conflict — global economy disruptions, Iranian attacks spread to sea

Middle East conflict

Australia is releasing 762 million liters of petrol and diesel from its reserves to ease supply shortages for farmers in rural areas.

It comes a day after the country temporarily relaxed fuel quality standards to allow unleaded petrol with higher sulfur levels to be mixed with local supplies. The “dirtier” fuel is normally sent offshore.

Like elsewhere, Australia is gripped with oil supply fears, but Environment Minister Chris Bowen has repeatedly insisted the country has enough fuel – for now.

“We continue to see expected ships arrive in our ports. However, a huge spike in demand has led to local shortages in many parts of regional Australia, and imports will come under further pressure should the conflict in the Middle East continue,” Bowen said in a statement Friday.

In rural Australia, residents rely on independent retailers who buy diesel on spot markets that are under pressure from surging demand.

Earlier this week, the only service station in Batlow, a small town west of the capital Canberra, ran out fuel, according to CNN affiliate 9 News.

Local lawmaker Joe McGirr said the owner had shuttered his petrol station rather than sell fuel to locals at “exorbitant prices.”

Communities are hoping some relief comes soon.

This week the International Energy Agency announced plans to release 400 million barrels of oil – the largest release of emergency stockpiles.

Australia’s petrol and diesel release will make up about 5 million barrels of that total, the government statement added.