Canberra: Anthony Albanese has moved to reassure Australians that the nation’s fuel supply remains secure, even as petrol prices surge and reports of panic buying and empty pumps spread across the country following the escalation of the Iran war.
Albanese acknowledged the ongoing risks posed by the conflict. Albanese stated that, “The longer this war goes on, the greater the impact will be,” adding that the government is taking steps to protect Australians from the worst effects.
Energy Minister Chris Bowen echoed the message, stressing that supply levels remain stable despite shortages at retail outlets. Chris Bowen remarked that, “For the next few weeks, Australia’s supply of petrol, diesel and oil will be the same, if not higher, than usual.”
We’re working to protect and shield Australians from the worst of the global fuel shock. pic.twitter.com/1SXLqKEnXW
— Anthony Albanese (@AlboMP) March 27, 2026
Authorities say the shortages are largely due to sudden changes in consumer behaviour rather than a drop in supply. Panic buying and stockpiling have disrupted distribution networks, leaving many petrol stations temporarily without fuel.
In Cairns, a small independent service station reported running out of unleaded petrol, while diesel prices have jumped by as much as 85 percent since the conflict began. Across New South Wales, roughly one in seven fuel retailers has run out of at least one type of fuel.
According to industry figures, the average petrol price has climbed to 238 Australian cents per litre, up from 171 cents just four weeks ago. Diesel prices in Sydney have reached a record 314.5 cents per litre.
Global tensions and supply chain disruptions
The sharp increase in fuel prices follows military action by the United States and Israel on Iran, and the subsequent closure of the Strait of Hormuz, a critical global oil transit route. The disruption has sent global oil prices soaring and intensified pressure on supply chains.
Adding to the strain, a recent cyclone in Western Australia forced outages at two major LNG facilities, Gorgon LNG Plant and Wheatstone LNG Plant which together account for around 5 percent of global supply.
Independent retailers under pressure
Smaller fuel retailers have been particularly affected. Without long-term supply contracts, they are often deprioritised by major oil companies during periods of high demand, worsening local shortages.
Industry representatives report that motorists are increasingly filling jerry cans and storing fuel at home, while some transport companies have instructed drivers to refuel whenever possible, even if tanks are only partially empty.
Government response and next steps
The federal government has begun releasing oil from the national stockpile and temporarily easing fuel standards to improve supply flexibility. However, officials have ruled out introducing fuel rationing at this stage.
Albanese is expected to convene an emergency national cabinet meeting to coordinate a broader response to the unfolding fuel crisis. As global tensions persist, authorities warn that prolonged conflict could further impact fuel prices and availability, despite current assurances of supply stability.
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