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While Australians continue to battle rising fuel costs across the country, federal authorities have lowered sulphur standards in petrol to accommodate supply constraints and surging demand.
As reported by Drive in March 2026, the Federal Government has scaled back sulphur limits – introduced in 2025 – on 95 and 98 unleaded petrol from 50 parts per million (ppm) to 10ppm until May 2026.
Additionally, the sulphur limit on the country’s 91 unleaded supply will also increase from 50ppm to 100ppm to further alleviate pressure at bowsers.
And though high-sulphur petrol has been labelled a ‘dirty fuel’ by some, experts say it isn’t dangerous and has been used in the country as recently as last year.
According to the Victorian Automotive Chamber of Commerce (VACC) CEO Peter Jones, “dirty fuel doesn’t mean contaminated or unsafe petrol”.
“It simply refers to fuel with a higher sulphur content than Australia’s newest ultra-low sulphur standard. This is the same fuel Australians were using as recently as December 2025, and it still meets government-approved standards,” he said.
However, Victoria’s peak industry body says the high-sulphur petrol can affect a car’s long-term performance, though drivers are unlikely to notice an immediate change. Modern cars are more susceptible to this phenomenon than older cars.
“Modern vehicles are designed to run on low-sulphur fuel. Over time, high sulphur levels can impact emissions systems, fuel efficiency, and components like catalytic convertors and oxygen sensors,” Jones advised.
“For the average driver, you’re unlikely to notice an immediate issue, but prolonged use isn’t ideal for vehicle performance or longevity,” he said.
Still, it pays to keep an eye out for telltale warning signs that high-sulphur fuel is having a detrimental effect on your vehicle.
“If you notice changes like reduced fuel efficiency, rough idling, or warning lights, it’s worth getting your vehicle checked,” Jones advised.
Another key issue facing Australian drivers is the dilemma of whether to pay extra for fuel with a higher octane rating.
According to Australian Automotive Aftermarket Association CEO Stuart Charity, a petrol's octane rating has a bigger impact on longevity than its sulphur levels.
"Don't confuse sulphur ratings with octane ratings. Octane ratings are what relate to a fuel's resistance to knock, and that is much more directly connected to how an engine is designed to run," Charity told Drive.
"If a manufacturer specifies premium petrol [95 or 98 unleaded], drivers should not try to save money by dropping to a lower grade. That can be a false economy, because the vehicle has been calibrated to a particular fuel requirement, and using the wrong octane can affect performance, efficiency and the way the engine operates."
In a March 2026 report by the ABC, the Federal Climate Change and Energy Minister Chris Bowen said the altered fuel sulphur standards would add 100 million litres of new high-sulphur petrol supply each month.
Minister Bowen said the petrol surplus would be distributed to regional parts of Australia.
"This is a practical measure, 100 million litres of extra fuel each month, which will be prioritised for regional Australia, with a particular emphasis on Queensland," he said in March 2026.
Ethan Cardinal graduated with a Journalism degree in 2020 from La Trobe University and has been working in the fashion industry as a freelance writer prior to joining Drive in 2023. Ethan greatly enjoys investigating and reporting on the cross sections between automotive, lifestyle and culture. Ethan relishes the opportunity to explore how deep cars are intertwined within different industries and how they could affect both casual readers and car enthusiasts.
