Prime Minister Anthony Albanese urged Australians to avoid panic buying of petrol and diesel, saying national fuel supplies remain secure even as localized shortages have appeared in some rural areas. He delivered the appeal after a meeting with state and territory leaders and said the federal government had taken steps to keep fuel flowing into the country.
Australia relies on imports for about 90% of its fuel needs. Officials said fears of disruption stemming from intensifying conflict in the Middle East have driven a surge in demand – in some places doubling normal volumes – creating short-term supply tightness in certain regions.
Anthony Albanese, Australia’s prime minister, during an address at the National Press Club in Canberra, Australia, on Tuesday, June 10, 2025.
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“Our fuel supply is currently secure. However, I want us to be over-prepared,” Albanese told reporters.
“My message to Australians is please do not take more fuel than you need. That is how you can help. That’s the Australian way,” he said.
Government response and supply-chain oversight
Albanese said the government would introduce additional measures to safeguard supply and appointed Anthea Harris, former head of the Australian Energy Regulator, to lead a national fuel supply task force focused on addressing shortages and strengthening the domestic supply chain.
The Australian Energy Regulator is the federal body responsible for regulating energy markets and networks under national energy laws. Harris’s appointment places an experienced market regulator in charge of coordinating the response across industry and government, working alongside fuel importers, refiners and major retail networks to keep product moving through ports, terminals and service stations.
The task force will report through the federal energy portfolio and is expected to advise on both immediate bottlenecks and medium-term resilience measures, including storage, shipping and domestic distribution.
Key actions announced:
– Federal steps already taken to ensure uninterrupted imports of fuel, including closer monitoring of shipping schedules and critical infrastructure.
– Creation of a national task force led by Anthea Harris to troubleshoot shortages, improve logistics and provide a single point of coordination with states and industry.
– Public request to avoid unnecessary purchases to prevent further strain on local outlets and protect priority access for emergency and essential services.
The government’s response sits within the existing national energy framework overseen by the Australian Energy Regulator, which administers and enforces key elements of the National Energy Laws.
Conflict-driven market pressure
Officials linked the spike in demand to developments in the Middle East that have pushed oil prices higher and unsettled global supply chains. According to the government’s account:
– Iran accused Israel of striking facilities at the South Pars gas field, described as the world’s largest.
– Iran then carried out retaliatory attacks on oil and gas targets across the Gulf.
– The escalation pushed benchmark prices upward, amplifying concerns about global supply and prompting Australian motorists and businesses to top up tanks pre‑emptively.
Albanese framed the domestic response as a test of “national calm and common sense,” arguing that orderly consumption would help Australia ride out what officials still characterise as a disruption risk, not a supply collapse.
Economic risk flagged by the central bank
The Reserve Bank of Australia said the war represents a “material risk” to the national economy, while noting that domestic banks are well positioned to support growth if conditions deteriorate. As Australia’s central bank, the RBA monitors financial stability and sets monetary policy; its assessment signals vigilance over commodity‑price shocks and confidence in banking‑sector resilience.
Higher fuel costs flow quickly into transport, food and broader consumer prices, making global oil volatility a key consideration for future interest‑rate decisions. The RBA’s commentary underscores that energy security is now a live macroeconomic issue as well as a household cost‑of‑living concern.
Competition regulator opens fuel-market probe
After widespread consumer concern about pricing and availability, the national competition regulator began an investigation into allegations of anti‑competitive conduct by several major fuel suppliers. The case names:
– Ampol
– BP’s Australian unit
– Mobil Oil Australia
– Viva Energy (operator of Shell and Liberty‑branded service stations)
The probe is at an investigative stage; allegations have been made but not proven. Australia’s competition authority can gather information and, where warranted, take enforcement action under competition law, including under the misuse‑of‑market‑power and cartel provisions of the Competition and Consumer Act. Officials stressed that the inquiry is intended both to test whether any wrongdoing has occurred and to reassure the public that sharp price movements are being scrutinised.
Regional contingency planning in New Zealand
Neighboring New Zealand asked officials to prepare contingency plans covering an eight‑to‑12‑week response period to cushion any supply disruption. Prime Minister Christopher Luxon said the country’s fuel supply remains adequate but cautioned that even a quick easing of the conflict would not translate into immediate relief, given shipping lead times and tight global markets.
The parallel moves in Canberra and Wellington highlight how closely integrated fuel markets are across the Tasman Sea, and how regional governments are now planning for prolonged volatility rather than a short‑lived price spike.
Albanese said his government would roll out additional measures to safeguard fuel supply, including further coordination with state fuel emergency plans and ongoing engagement with international partners, if conditions worsen. He reiterated that avoiding panic buying remains “the most practical contribution Australians can make” while those plans are put in place.