Australia is grappling with a worsening fuel shortage after dozens of service stations across New South Wales ran completely dry, leaving motorists stranded and triggering emergency intervention from the federal government. Prime Minister Anthony Albanese has appointed a dedicated fuel supply taskforce coordinator to manage the crisis and restore distribution to affected areas. The Australian Competition and Consumer Commission has simultaneously launched a formal price-gouging investigation targeting major fuel suppliers accused of exploiting the shortfall.
The shortage has hit hardest in western Sydney and regional New South Wales, where more than 60 service stations reported zero stock of both unleaded petrol and diesel over the past 48 hours. Wholesale petrol prices surged by approximately 15 per cent in the past week, with some independent retailers reporting rack prices above $2.40 per litre. The ACCC investigation will focus on whether companies including Viva Energy, Ampol, and BP Australia engaged in unconscionable conduct by withholding supply or inflating margins during the disruption.
The crisis stems from a combination of factors, including scheduled maintenance at two of Australia's remaining oil refineries and logistical bottlenecks at key fuel import terminals along the eastern seaboard. Australia imports roughly 90 per cent of its refined fuel, a vulnerability that has been repeatedly flagged in government reviews since the 2019 fuel security inquiry. The federal government's Fuel Security Services Payment scheme, introduced in 2021 to keep domestic refineries operating, has come under renewed scrutiny over whether it has delivered sufficient resilience.
New South Wales Premier Chris Minns described the situation as unacceptable and called on the Commonwealth to release emergency fuel reserves held under the International Energy Agency obligation. The Australian Automobile Association urged calm, warning that panic buying was compounding supply problems at stations that still had stock. Opposition energy spokesperson Ted O'Brien accused the government of failing to act on longstanding warnings about the fragility of Australia's fuel supply chain.
The newly appointed taskforce coordinator is expected to deliver an interim report within seven days outlining measures to restore supply, including possible activation of strategic petroleum reserves and coordination with international shipping partners. The ACCC has warned fuel companies that penalties for price-gouging under Australian Consumer Law can reach tens of millions of dollars per contravention. Industry analysts expect the supply disruption to take at least two to three weeks to fully resolve, with flow-on effects likely for freight costs, food prices, and agricultural operations across the eastern states.