Prime Minister Anthony Albanese has unveiled sweeping emergency fuel security powers designed to safeguard Australia's petroleum supply chain against disruptions caused by escalating conflict in the Middle East. The announcement comes as global shipping routes face increasing threats, raising concerns about the reliability of fuel imports to a nation that depends on overseas refineries for more than 90 per cent of its liquid fuel needs. Albanese used the announcement to directly address panic buying behaviour at petrol stations across the country, warning that rushed stockpiling was worsening localised shortages.
Under the new powers, the federal government will be able to direct fuel distributors to prioritise supply to essential services including hospitals, emergency vehicles, public transport, and defence operations. The legislation will also grant the Energy Minister authority to temporarily cap wholesale fuel margins during a declared supply emergency, and to requisition strategic reserves held at terminal facilities around the country. The government has committed $270 million to fast-track construction of additional diesel and jet fuel storage capacity at key sites in Darwin, Townsville, and Western Sydney.
Australia's fuel security vulnerabilities have been a persistent concern since the closure of several domestic refineries over the past two decades, leaving only two major facilities operating — Viva Energy's Geelong refinery in Victoria and Ampol's Lytton refinery in Queensland. A 2020 review found Australia held as few as 20 days of diesel reserves, well below the 90-day minimum recommended by the International Energy Agency. The Morrison government's Fuel Security Package, introduced in 2021, provided subsidies to keep remaining refineries open but did not address the country's heavy reliance on imports shipped through potentially contested sea lanes.
Opposition energy spokesperson Ted O'Brien criticised the timing of the announcement, arguing the Coalition had repeatedly called for stronger fuel resilience measures over the past 18 months. Industry groups including the Australian Institute of Petroleum acknowledged the need for greater supply certainty but cautioned that price intervention mechanisms could discourage private investment in storage infrastructure. Motoring organisation the NRMA welcomed the emergency powers, with spokesperson Peter Khoury urging motorists to refuel normally rather than filling extra jerry cans.
Parliament is expected to debate the emergency powers legislation in the first sitting week of April, with the government seeking bipartisan support for a fast-tracked passage. If enacted, the new framework will establish a permanent National Fuel Security Coordinator within the Department of Climate Change, Energy, the Environment and Water to monitor supply levels in real time. The measures are likely to intensify broader debate about Australia's sovereign manufacturing capability and the strategic risks of depending on long maritime supply chains for critical commodities.