Prime Minister Anthony Albanese convened an emergency National Cabinet meeting with state and territory leaders today to discuss responses to ongoing fuel shortages, marking the second such meeting on the issue.
The talks come amid sustained tensions in the Middle East and elevated global oil prices, with fuel supply disruptions reported across parts of Australia. Hundreds of petrol stations have experienced shortages, raising concerns in the market.
Industry groups and local governments have called on the federal government to establish a coordinated national response, including the creation of a nationwide platform to monitor fuel prices and supply levels. Proposals also include promoting public transport use and even introducing free transit measures to curb demand and stabilise the market. The Australian Chamber of Commerce and Industry warned against a repeat of the fragmented state responses seen during the COVID-19 pandemic, urging stronger federal coordination.
Australia imports around 90 per cent of its fuel, leaving it exposed to external shocks. Instability around the Strait of Hormuz has heightened supply risks. While overall fuel reserves remain at normal levels, fears of future disruptions have triggered panic buying, worsening localised shortages.
The federal government said it plans to amend regulations to strengthen fuel security and will continue to closely monitor supply chains. However, some state governments criticised Canberra for not releasing information in a timely manner and called for a regular public reporting mechanism to improve transparency.
At the same time, pressure on energy supply has intensified. Operations at several liquefied natural gas facilities in Western Australia remain partially disrupted following Tropical Cyclone Cyclone Narelle, affecting production by companies including Chevron and Woodside Energy. Operators said some activities are gradually resuming, but a full recovery timeline remains uncertain.
Analysts warn that continued instability in the Middle East, combined with domestic production disruptions, could lead to sustained fuel price increases and supply volatility in the near term. How governments coordinate a nationwide response is expected to be critical in stabilising the market.