Australia Bunker Fuel Market Overview, 2030

Australia’s bunker fuel market holds significant importance due to the central role the country’s maritime industry plays in facilitating both domestic and international trade. Positioned strategically within the Asia-Pacific region, Australia is a key player in the global shipping sector, with major ports such as Sydney, Melbourne, Brisbane, and Fremantle acting as vital nodes for shipping routes that span the globe. As a result, bunker fuel is indispensable for the operation of the large vessels that frequent these busy shipping lanes. Bunker fuel powers a wide range of maritime vessels, from bulk carriers and container ships to oil tankers and cruise liners, all of which rely on this fuel to operate efficiently. The types of bunker fuels used in the Australian market are diverse, with marine gas oil (MGO) and intermediate fuel oil (IFO) being the two most commonly utilized. These fuels are chosen based on the operational needs of different types of vessels, with MGO being preferred for vessels operating in environmentally sensitive areas due to its lower sulfur content, while IFO is favored for larger ships due to its cost-effectiveness. The Australian bunker fuel market, however, is increasingly influenced by international regulations, particularly those introduced by the International Maritime Organization (IMO), which have set stricter emissions standards. As a response, the demand for low-sulfur fuels has risen, with a growing interest in alternative fuel sources like LNG (liquefied natural gas) as part of an overall shift towards cleaner energy in maritime transport.

According to the research report Australia Bunker fuel Market Overview, 2030, published by Bonafide Research, the Australia Bunker fuel market was valued at more than USD 2.86 Billion in 2024. At the same time, the Australian bunker fuel market is affected by a range of domestic factors, including the country’s extensive coastline, the prominence of its export-driven economy, and the logistical complexities of fueling vessels at major ports. Australia’s long coastline stretches over 25,000 kilometers, which results in a high level of maritime activity. The country is one of the world’s leading exporters of commodities such as coal, iron ore, agricultural products, and natural gas, all of which require significant shipping infrastructure to transport. As the demand for these exports continue to grow, so does the need for a steady and reliable supply of bunker fuel to ensure that Australian vessels remain operational and competitive in the global market. In addition to this, fluctuations in global oil prices can significantly affect the costs of bunker fuel, which in turn influences the broader shipping industry’s operations and profitability. Moreover, the Australian bunker fuel market is also shaped by internal logistical challenges, such as port congestion, which can delay fuel delivery schedules and impact the availability of bunker fuel at critical times. In light of these challenges, Australia is making concerted efforts to modernize its infrastructure and improve the efficiency of fuel delivery systems. This includes developing new fuel storage facilities, implementing advanced refueling technology, and investing in sustainable practices. The country is also exploring the possibility of using more eco-friendly fuel alternatives, such as biofuels and LNG, to reduce the environmental impact of its maritime sector and meet both domestic and international environmental goals.

The bunker fuel market in Australia is characterized by a broad spectrum of fuel types catering to the diverse needs of the country’s maritime industry. One of the traditional fuels in use is High Sulfur Fuel Oil (HSFO), which has been a mainstay for many of the older vessels operating in Australian waters, particularly those equipped with exhaust gas cleaning systems (scrubbers) that mitigate sulfur emissions. However, with the increasing pressure for maritime industries to adhere to global environmental standards, particularly the International Maritime Organization’s regulations on sulfur emissions, there has been a marked shift toward more sustainable fuel alternatives. Marine Gas Oil (MGO) has emerged as a key fuel for vessels that need to comply with stringent sulfur content regulations. This fuel type is refined to have a significantly lower sulfur content, making it suitable for vessels operating in controlled emission zones where stricter limits are imposed. Furthermore, the Australian maritime industry is experiencing a significant move toward Liquefied Natural Gas (LNG), a cleaner and more environmentally friendly fuel alternative. As Australia invests in expanding LNG infrastructure at its ports, more vessels are beginning to switch to LNG, aligning with global efforts to reduce the environmental impact of maritime transport. In addition to these fuels, there is a growing interest in other alternative fuels such as biofuels, methanol, ammonia, and hydrogen, which have the potential to play a significant role in the decarbonization of the shipping industry.

Container ships, which are a critical component of the Australian maritime industry, transport large volumes of containerized goods across international shipping routes, requiring high-performance bunker fuels to power their long voyages. The fuel used in these vessels must meet high standards of efficiency and reliability, given the importance of container shipping to Australia’s economy. Bulk carriers also play a significant role in the Australian maritime sector, moving essential raw materials such as coal, iron ore, and agricultural products between domestic and international markets. These vessels typically operate in less-regulated environments compared to container ships and often use high-sulfur fuels due to their cost-effectiveness and long-distance travel requirements. Oil tankers are another vital segment of the Australian shipping industry, with these vessels tasked with transporting crude oil and petroleum products. These ships often have specific fuel needs, as their operations are highly regulated to ensure safety and environmental compliance. Chemical tankers, which transport hazardous liquid chemicals, require specialized fuels due to the unique handling and safety measures involved in transporting such cargo. Other types of vessels operating in Australian waters, such as general cargo ships, cruise ships, ferries, and offshore support vessels, all have specific fuel needs based on their operations, cargo types, and the regions in which they operate.

The distribution of bunker fuel in Australia is managed by a combination of major multinational oil companies, large independent distributors, and regional suppliers, ensuring the fuel needs of the diverse maritime industry are met efficiently. The oil majors, such as Shell, BP, and ExxonMobil, are the dominant players in the market, with their expansive supply networks that span across Australia’s major ports. These multinational corporations not only have the refining and storage infrastructure to ensure a steady supply of bunker fuel, but also provide integrated services from fuel delivery to logistical support, making them the preferred suppliers for large shipping companies operating on both international and domestic routes. Alongside these oil majors, large independent bunker fuel distributors, including companies like Bunker Holding and World Fuel Services, contribute significantly to the market by offering competitive pricing and an extensive network of bunkering services at multiple ports across Australia. These distributors work closely with shipping companies, offering flexible fuel solutions tailored to the specific needs of the industry. Smaller, independent distributors also play a crucial role, particularly in regional markets or specific ports where larger companies may have limited presence. These smaller players often provide a more personalized service, focusing on specific regional or niche markets, and may offer more localized fuel supply options, which are critical for servicing vessels operating in more remote or less-accessible areas of the Australian coastline.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Bunker Fuel Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• High Sulfur Fuel Oil (HSFO)
• Marine Gas Oil (MGO)
• Liquefied Natural Gas (LNG)
• Other Fuel Types

By Application
• Container Ships
• Bulk Carriers
• Oil Tankers
• Chemical Tankers
• General Cargo Ships
• Others

By Distribution Channel
• Oil Majors
• Large Independent Distributors
• Small Independent Distributors

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.