Australia's Fuel Crisis: Ethanol Boosts & Diesel Easing

0:00Australia faces a growing fuel crisis from the Middle East War, prompting the federal government to eye higher ethanol blends in petrol to stretch, supplies and dodge shortages. Ministers are exploring options like E-15 fuel, already used in places like the United States, with backing from groups such as the N-R-M-A. This comes alongside a six-month easing of diesel standards to tap imports from the U.S., Canada, and the European Union. Other mining operations are already cutting back non-essential work due to spotty fuel deliveries in regional areas, raising worries about jobs, and tax revenue if things worsen. Industry leaders want miners classed as essential services for any rationing, much like during the COVID pandemic, to keep the economic engine running. On diesel and jet fuel, farmers are sounding the alarm on food prices spiking soon, as higher production costs from the oil crunch force them to pass expenses to consumers. Fueling inflation and interest rate hikes that hit everyone hard.

1:01Treasurer Jim Chalmers admitted to business leaders that the economy will feel the buffeting until the war ends. Energy officials confirmed they're reviewing ethanol boosts for safety and supply gains, noting Australia produces it from wheat starch or molasses. Only new South Wales and Queensland mandate E-10 now, but calls grow for a national or temporary push to ramp up blending in production. Proneds say this renewable mix can extend stocks quickly, while building longer term resilience, especially since current ethanol use falls short of. Capacity across refining. With all options on the table, these steps aim to steady supplies amid the pressures. I'm Corey, with the story, and you've been listening to Sydney News today, AI-powered local news.