Australia says fuel supply levels stable, PM against panic buying

Prime Minister Anthony Albanese on Thursday urged Australians to avoid panic buying of petrol and diesel, which he said had led to shortages in some rural regions, and stressed the nation’s fuel supply levels remained stable.

Australia is dependent on imports for about 90% of its fuel needs, and fear of supply disruptions due to the escalating war in the Middle East has led to a doubling of fuel demand in some regions resulting in localized shortages.

Albanese said the federal government had already taken steps to ensure an uninterrupted supply of fuel into the country.

“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, following a meeting with state and territory leaders.

Conflict in the Middle East intensified on Wednesday, driving oil prices higher, as Iran accused Israel of striking its facilities in the South Pars gas field, the world’s biggest, and retaliated with attacks on oil and gas targets across the Gulf.

Albanese said his government would roll out additional measures in the coming days to safeguard fuel supply and appointed Anthea Harris, the former boss of the Australian Energy Regulator, as head of a national fuel supply task force to tackle shortages and improve the domestic fuel supply chain.

The Reserve Bank of Australia warned on Thursday the war was a material risk to the Australian economy, though it said domestic banks remained well-positioned to support growth in the event of a significant downturn.

After widespread concerns among consumers over fuel pricing and supply issues, Australia’s competition regulator on Thursday began an investigation into allegations of anti-competitive conduct by major fuel suppliers including Ampol, BP’s Australian unit, Mobil Oil Australia and Viva Energy, which operates Shell and Liberty fuel stations.

Neighboring New Zealand said it had asked officials to work on contingency plans for an eight-to-12-week response period to mitigate potential supply disruptions.

Prime Minister Christopher Luxon told reporters the country’s fuel supply remained adequate but warned even if the conflict eased soon that would not deliver immediate relief.