Disruptions in global supply chains are beginning to reverberate across the country, prompting the federal government to release up to 20% of Australia’s Minimum Stockholding Obligation.
The move could inject roughly 762 million litres of petrol and diesel into the domestic market, aiming to ease shortages that have emerged in regional areas following a sudden surge in demand.
Yet analysts warn the relief may take time to materialise, as fuel navigates Australia’s sprawling and complex distribution network before reaching the forecourt.
At an international level, governments and agencies are also releasing record volumes of fuel from emergency reserves to counter shortages. The aim is to cushion the impact of the fuel crisis triggered by the blockade of the Strait of Hormuz.
“If that shipping route remains effectively closed, that will have ongoing consequences for fuel prices, production, supply chains and, of course, an inflationary impact all over the world,” Prime Minister Anthony Albanese said.
To counter the disruption, the International Energy Agency (IEA) has agreed to make available 400 million barrels of oil from emergency stocks in what it has described as an “emergency collective action of unprecedented size.”
The extra fuel supply will come from stockpiles held by the agency’s 32 member countries, including Australia, but on a voluntary basis.
The decision comes against a backdrop of heightened tensions in the Middle East, which threaten to further destabilise global energy markets.
Prolonged conflict could exacerbate Australia’s reliance on imported fuel — a vulnerability critics say successive governments have long neglected.
Currently, Australia maintains roughly 36 days of fuel reserves, well below the 90-day threshold recommended internationally.
Over the past two decades, a wave of refinery closures has left the nation heavily dependent on overseas refining capacity, placing it at the mercy of international markets and shipping routes.
Meanwhile, Victoria has introduced new fuel pricing rules designed to curb volatility. Petrol stations must now set prices for the following day by 2pm, with published rates on the Servo Saver platform at 4pm, and prices fixed for 24 hours from 6am.
Energy Minister Chris Bowen has urged Australians not to panic buy, even as extra supply begins to flow through fuel bowsers.
“Get as much fuel as you need, but not less and not more because we’re seeing a doubling of demand for fuel since the bombing of Iran,” he said
Despite releasing emergency fuel stocks, Mr Bowen stressed that oil and fuel were still arriving by ship into Australia.
While these measures improve transparency, they do little to address the deeper structural issue: Australia’s dependence on global fuel markets and the fragile domestic supply chain.
