Prime Minister Anthony Albanese has been working to reassure the public that Australia’s fuel supply remains robust in the immediate term, even as spiralling petrol and diesel prices and widespread reports of panic buying have put pressure on motorists, businesses and the transport sector.
The disruption, sparked largely by the war involving the United States, Israel and Iran and the resulting effective closure of the Strait of Hormuz, has led to significant price volatility and shortages at service stations in several states.
“The longer this war goes on, the greater the impact will be. But we continue to act to prepare and shield Australians from the worst of it,” Albanese told reporters on Friday, underscoring his government’s efforts to manage the unfolding situation.
Energy Minister Chris Bowen echoed this message alongside the prime minister, asserting that for “the next few weeks, Australia’s supply of petrol and diesel and oil will be the same, if not higher, than it normally would be”.
The government has also moved to relax fuel quality standards to increase available volumes domestically, bringing an additional 100 million litres into supply by adjusting levels of sulphur in petrol and diesel for a limited period.
Despite official assurances, the situation at forecourts tells a more chaotic story. In New South Wales, outlets in Sydney have begun rationing fuel, with limits per vehicle and bans on jerry can fills as some stations have completely run dry of certain grades.
Reports suggest that around 347 service stations have run out of at least one type of fuel, and in some areas motorists are facing waits of several days for new deliveries. Across Victoria, the state’s energy minister confirmed that more than 100 petrol stations had reported outages or were low on stock as drivers rush to fill up.
The rush to pumps has itself become part of the problem. Motorists are widely seen filling containers and extra tanks at service stations, a behaviour that industry bodies say exacerbates shortages that otherwise might not exist.
A recent NRMA (National Roads and Motorists’ Association) survey suggested Australians are cutting back on driving altogether in response to higher prices, with many adopting carpooling or public transport to ease the burden, while state leaders warn against unsafe fuel storage at home.
The conflict in the Middle East has caused the price of crude oil to jump sharply, a shock that has been described by the International Energy Agency as among the most severe disruptions to global energy systems in decades. Australia imports more than 90 per cent of its refined oil products, meaning domestic prices and availability are highly exposed to international dynamics.
The government’s response has included convening emergency meetings of the national cabinet to coordinate a more cohesive strategy, and Bowen has hinted at tapping into portions of the national fuel reserve to smooth supply.
Alongside these pressures, a cyclone in Western Australia recently disrupted operations at major LNG facilities, adding an additional layer of stress to energy markets and raising the spectre of broader supply challenges at a time when global confidence in energy stability is already fragile.
