The company, which distributes both retail and wholesale oil, could be worth up to A$650m ($681m) based on a 6.6-times EBITDA multiple, the Wall Street Journal reported.
The firm has sent out marketing materials that forecasts EBITDA of just under A$100m for 2012, the report said.
Morgan Stanley will handle the sale if a formal offer is accepted, the report added.
Archer paid A$120m for a 73.2 per cent stake in Ausfuel in May 2010.
The company has since expanded by buying Gull Petroleum, Western Australia’s largest independent fuel business, and Central Queensland-focused Choice Petroleum.
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