Australia traditionally relies on Asia for the bulk of its refined fuel imports. However, China and Thailand have recently banned fuel exports to preserve domestic supplies, and regional refiners are cutting output. The disruptions are linked to Iran’s blockade of the Strait of Hormuz, which has sharply reduced crude shipments from the Middle East.
By the end of March, at least 200,000 metric tons of gasoline, diesel, and jet fuel will have been loaded from the U.S. Gulf Coast and West Coast for shipment to Australia, according to three trading sources. Based on U.S. Energy Information Administration data, this marks the largest volume of U.S. fuel shipped to Australia in a single month in over three decades.
ExxonMobil has booked three ships to transport up to 120,000 tons of combined fuels, while BP has chartered a tanker for 40,000 tons of diesel, and Vitol is sending 40,000 tons of gasoline. Vitol and ExxonMobil declined to comment, and BP did not immediately respond to requests for comment.
Chartering a medium-range tanker for roughly 40,000 tons of fuel from the U.S. to Australia costs at least $6 million, according to two shipbroking sources—equivalent to about $150 per ton. The journey typically takes 30 to 40 days, significantly longer than shipments from Asia, which generally take 10 to 20 days. All three companies also operate retail fuel stations in Australia.
Analysts expect volumes along this U.S.-to-Australia route to hit a record high this month as oil majors seek to cover supply shortages outside Asia.
Australia’s reliance on imports underscores its vulnerability to global oil shocks. Government data show the country’s petroleum product stockpiles are far below global standards, with 84% of its needs imported in 2025. Of roughly 35 million tons of refined fuels brought in last year, more than 90% came from Asia, according to Kpler shiptracking data.
“There will definitely be more need for these types of arbitrage flows,” said Neil Crosby, vice president of oil analytics at Sparta Commodities. He noted that Houston currently offers the cheapest gasoline for delivery to Australia, followed by the Amsterdam-Rotterdam-Antwerp hub in northern Europe. “The longer this crisis goes on, the clearer it becomes how short fuels in Asia are suddenly becoming,” Crosby added.
Gasoline from Houston for May delivery is roughly $17 per barrel cheaper than from Singapore, Sparta Commodities data showed on March 18.
Meanwhile, Australia’s competition regulator announced Thursday it has launched an investigation into allegations of anti-competitive conduct by major fuel suppliers, including Ampol, BP’s Australian unit, Mobil Oil Australia, and Viva Energy, where Vitol is a major shareholder. The announcement follows the government’s recent decision to release petrol and diesel from domestic reserves to alleviate shortages, particularly in rural areas.
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