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Government reassures public as fuel prices surge
Australian Prime Minister Anthony Albanese has moved to calm fears over fuel supplies, insisting the nation's reserves remain stable despite soaring prices and widespread reports of shortages. Speaking to reporters on Friday, Albanese acknowledged the growing impact of the Iran war but stressed that the government is taking steps to protect consumers.
"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," he said.
Shortages driven by demand, not supply
Energy Minister Chris Bowen echoed Albanese's remarks, stating that fuel availability for the coming weeks would match or exceed pre-war levels. However, distribution disruptions and shifting consumer behavior-rather than a drop in supply-have led to localized shortages.
In New South Wales, one in seven fuel retailers reported being out of at least one type of fuel this week. Nationwide, hundreds of stations have faced similar stockouts, with independent operators hit hardest due to their reliance on spot-market purchases rather than long-term contracts.
Prices hit record highs as panic buying spreads
The average retail price of petrol surged to 238 Australian cents per liter ($1.64; £1.23) as of Sunday, up from 171 cents four weeks prior, according to the Australian Institute of Petroleum. Diesel prices in Sydney reached an all-time high of 314.5 cents per liter on Thursday, the National Roads and Motorists' Association (NRMA) reported.
Peter Khoury, an NRMA spokesperson, attributed the shortages to panic buying, noting that motorists are filling jerry cans and topping up tanks at half capacity. "We're hearing increasingly of transport companies telling their drivers that if you're half full and you see diesel, buy it," he told the BBC.
Regional impacts and government response
In Cairns, Queensland, a small independent garage ran out of unleaded petrol, while diesel prices soared 85% above pre-war levels. The BBC described the situation as typical of conditions across Australia.
Albanese is scheduled to convene an emergency national cabinet meeting on Monday to address the crisis. While rationing has been ruled out, the government has released oil from the national stockpile and relaxed fuel standards to ease pressure on supplies.
Global market strain worsens crisis
The fuel shortage has been compounded by a cyclone in Western Australia, which triggered outages at two major LNG plants-Gorgon and Wheatstone-owned by Chevron. Together, the facilities supply roughly 5% of the global market, further tightening supply chains already strained by the closure of the Strait of Hormuz.
The conflict between the US, Israel, and Iran has sent oil prices spiraling, with Australia's fuel costs rising in tandem. Officials warn that the situation may deteriorate if the war persists.
