Australia Bunker Fuel Market Report and Forecast 2025-2034

According to this report, the Australia Bunker Fuel market size witnessed a healthy growth in 2024. Aided by the increasing maritime trade, the shift towards lower-sulphur bunker fuels, and Australia’s position as a major global shipping hub, the market is projected to grow at a CAGR of 7.9% between 2025 and 2034.

Bunker fuel refers to the fuel used to power large vessels, including ships, tankers, and cargo carriers. It plays a pivotal role in international trade and logistics, fuelling the vast majority of the world’s merchant fleet. As global shipping activity continues to rise, particularly with the growth of the Asia-Pacific region, the demand for bunker fuel in Australia has seen steady upward momentum. Given Australia's strategic location in the Indo-Pacific shipping lanes, it serves as a key bunker refuelling port for vessels transiting through the region.

The Australia bunker fuel market expansion is influenced by stringent environmental regulations and the global transition towards cleaner fuels. The International Maritime Organization’s (IMO) regulation on sulphur content has prompted Australian ports to increasingly adopt low-sulphur fuels, further shaping the market dynamics. With growing concerns over climate change and sustainability, shipping companies are prioritizing the adoption of eco-friendly bunker fuels, such as low-sulphur fuel oil (LSFO), marine gas oil (MGO), and even LNG (liquefied natural gas).

Australia’s strong economic ties with countries across the Asia-Pacific, including China, Japan, and South Korea, ensure that its maritime trade is vital for the global supply chain. The rise in global consumption, especially of energy resources, agricultural products, and raw materials, has translated into an increased demand for bunker fuel in Australia. The country’s strategic location in major international shipping routes, particularly the Pacific Ocean and the Indian Ocean, further cements its role as a key supplier of bunker fuel. This is one of the key Australia bunker fuel market trends.

The burgeoning demand for Australian exports such as coal, iron ore, and liquefied natural gas (LNG) continues to boost maritime shipping activity. Australian ports, such as those in Sydney, Melbourne, and Brisbane, serve as critical hubs for bunkering services, enabling ships to refuel while transiting through the region. With Australia serving as a prominent exporter, the demand for bunker fuel is set to continue rising as shipping volumes grow.

Environmental regulations play a significant role in shaping the Australia bunker fuel market landscape. In 2020, the International Maritime Organization (IMO) introduced regulations capping sulphur content in marine fuels to 0.5%, down from the previous 3.5%. This regulation has driven significant shifts in the bunker fuel market, especially in regions like Australia, where shipping companies are under increasing pressure to meet these new standards.

The Australian government has taken additional steps to implement these global standards at a local level, which has resulted in the increased consumption of low-sulphur bunker fuels. Ships are increasingly opting for LSFO (Low Sulphur Fuel Oil) or MGO (Marine Gas Oil) in order to comply with the IMO's sulphur cap. This regulatory shift is expected to sustain the demand for cleaner bunker fuels in Australia. This is driving the Australia bunker fuel market growth.

Moreover, Australia's commitment to reducing carbon emissions has spurred the exploration of alternative fuels in the maritime industry. Research into LNG as a more sustainable bunker fuel option has been gaining traction in the region. LNG emits significantly fewer carbon emissions than traditional bunker fuels and is considered an environmentally viable alternative, contributing to the future trajectory of the Australia bunker fuel market.

The Australia bunker fuel market is also benefiting from ongoing advancements in infrastructure and technology. The expansion and modernisation of Australian ports have enabled better and more efficient bunkering operations, which support the country’s role as a regional maritime hub. Automation and digitalisation have streamlined processes at key refuelling stations, ensuring that ships are able to replenish their fuel supplies efficiently and on time.

Furthermore, the development of innovative fuel management systems and fuel blending technologies has paved the way for more precise and sustainable fuel offerings. These advancements help reduce operational costs for shipping companies and improve the overall efficiency of bunker fuel consumption, which is expected to bolster the Australia bunker fuel market development during the forecast period.

With an increasing global focus on sustainability, Australian shipping companies are looking to adopt eco-friendly practices, including transitioning to low-carbon or carbon-neutral bunker fuels. Several international shipping companies operating in Australian waters have committed to reducing their carbon footprint by incorporating renewable energy sources, such as biofuels, into their fuel mix. This growing trend towards cleaner maritime fuels is expected to drive demand for more sustainable bunker fuels, further impacting the Australia bunker fuel market dynamics.

However, the price volatility of crude oil significantly affects the cost of bunker fuels, as crude oil is the primary raw material for most marine fuels. Fluctuating oil prices, driven by geopolitical events, global supply-demand imbalances, and economic factors, can lead to unstable bunker fuel costs. Such price fluctuations present a challenge for shipping companies, which are often compelled to navigate the rising costs associated with bunkering.

As per the Australia bunker fuel market analysis, Australia also faces stiff competition from other regional bunkering hubs, such as Singapore, Hong Kong, and South Korea, which offer competitive pricing and established bunkering infrastructure. As these ports continue to develop their facilities and services, Australian ports must maintain their competitiveness by enhancing their infrastructure and offering attractive pricing models for shipping companies.

The Australia bunker fuel market is poised for steady growth in the coming years, driven by increasing shipping activity, regulatory compliance, and technological advancements. As Australia strengthens its role in the global maritime supply chain and adapts to environmental regulations, the bunker fuel market is expected to remain a critical component of the country’s economic infrastructure. The shift towards cleaner, low-sulphur, and alternative marine fuels will continue to shape market dynamics, while the expansion of port infrastructure and technological innovation will further facilitate the growth of this market.

Market Segmentation

The market can be divided based on fuel type, vessel type, commercial distributor, and region.

Market Breakup by Fuel Type

• Marine Diesel Oil (MDO)
• High Sulphur Fuel Oil (HSFO)
• Liquefied Natural Gas (LNG)
• Very Low Sulphur Fuel Oil (VLSFO)

Market Breakup by Vessel Type

• General Cargo
• Gas Tanker
• Bulk Carrier
• Chemical Tanker
• Fishing Vessels
• Others

Market Breakup by Commercial Distributor

• Small Independent Distributor
• Oil Majors
• Large Independent Distributor
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia bunker fuel market. Some of the major players explored in the report are as follows:

• Viva Energy Australia Pty Ltd
• Dan-Bunkering Ltd.
• Bailey’s Marine Fuels
• S&P Global Inc.
• Others