Prime Minister Anthony Albanese has convened a second emergency national cabinet meeting as fuel shortages escalate across Australia, with hundreds of service stations unable to supply petrol and diesel to motorists. The crisis, which began earlier this week, has now spread from initial hotspots in regional New South Wales and Queensland to major metropolitan areas including Sydney, Melbourne, and Brisbane. Long queues have formed at stations still receiving deliveries, with some imposing strict purchase limits of 40 litres per vehicle.
The national cabinet meeting, scheduled for Thursday afternoon, will bring together all state and territory leaders to coordinate a unified response to the worsening supply disruption. Industry estimates suggest more than 600 service stations nationally have run dry, while fuel reserves at major distribution terminals in Sydney and Melbourne have fallen below 30 per cent of normal capacity. The Australian Institute of Petroleum confirmed that wholesale diesel prices surged 18 per cent over the past five days, adding further pressure on transport operators and freight companies.
Australia imports roughly 90 per cent of its refined fuel, leaving the country heavily exposed to disruptions in global shipping routes and refinery output. The closure of several key refineries in Southeast Asia for scheduled maintenance, combined with ongoing tensions affecting tanker movements through the Red Sea, has created a perfect storm of constrained supply. Federal government reviews dating back to 2019 warned that Australia held dangerously low fuel reserves compared to International Energy Agency recommendations, yet stockpile targets have repeatedly been missed.
Opposition Leader Peter Dutton accused the Albanese government of failing to act on fuel security warnings, calling the crisis entirely preventable and demanding the immediate release of strategic reserves held at facilities in Darwin and Western Australia. Transport Workers Union national secretary Michael Kaine warned that freight operators face potential shutdowns within days if diesel supply is not restored, threatening supermarket shelves and construction sites across the eastern seaboard. Several state premiers, including New South Wales Premier Chris Minns, have urged calm while announcing emergency coordination centres in their respective capitals.
The national cabinet is expected to consider activating the National Oil Supplies Emergency Committee, a body established to manage severe fuel disruptions, for only the second time in its history. Emergency measures under discussion include prioritising fuel deliveries to essential services, hospitals, and emergency vehicles, as well as negotiating accelerated tanker shipments from reserves held in the United States and Japan under bilateral agreements. The crisis is forecast to ease within 10 to 14 days as maintenance at Asian refineries concludes, but economists warn the short-term economic cost could exceed $2 billion in lost productivity and higher consumer prices.