The Albanese government will use public money to underwrite the delivery of extra fuel in a bid to shore up supply during the Middle East conflict.
Hundreds of service stations across Australia are experiencing shortages of either unleaded petrol or diesel, particularly in New South Wales and Queensland.
Prime Minister Anthony Albanese has announced the government will take further measures to boost supply by underwriting the purchase of additional fuel from the international market.
Under the plan, petrol giants will still buy fuel, but the government will take on the financial risk of shipments that might otherwise be too expensive.
“This support from the government will not be business as usual,”
Mr Albanese said.
“It has to be additional supplies that are available on the international market and it literally will be underwriting the purchase of shiploads of fuel to get here to Australia.
“It will give suppliers the confidence to secure additional and discretionary cargoes and can be used to service uncontracted demand, including for regional and independent fuel suppliers.”
Requires legislation to be implemented
Labor will introduce legislation to parliament on Monday, seeking to amend the Export Finance and Insurance Corporation Act to grant new fuel security powers to acquire additional supply.
Tony Wood, a senior fellow in energy and climate change at the Grattan Institute, backed the move during an interview on ABC’s Weekend Breakfast.
Mr Wood said he did not know how much the measures would cost taxpayers.
“How long it goes on will dictate absolutely how much money it entails,”
he said.
“That has some implications for the upcoming budget as well.”
He said the action made sense and provided an “insurance against high costs that the companies themselves are finding hard to deal [with]” .
Panic buyers told to stop
The government has repeatedly insisted Australia’s fuel shortages are being caused by panic buying — not supply constraints.
Footage circulating on social media shows people filling up multiple jerry cans with fuel at service stations.
“This isn’t toilet paper that’s being piled up in some garages,” Mr Albanese said.
“It’s actually fuel, and that’s not sensible on a range of levels.”
Energy Minister Chris Bowen said Australia had more than a month’s worth of fuel in reserve, including petrol and jet fuel.
While the government is taking further steps to target supply, the opposition has been focused on the cost.
Opposition signals cautious support for bill
The Opposition appears open to back the fuel support legislation.
Shadow Energy Minister Dan Tehan said the party will examine the bill to ensure its powers remain proportionate.
“The Coalition believes in freedom of navigation and the free market,”
Mr Tehan said.
“But as these are extraordinary times, extraordinary powers, such as supporting the costs and insurance of commercial shipping, should be considered as a short-term measure.”
Opposition Leader Angus Taylor today repeated his call for the government to halve the fuel excise — a 53 per cent flat tax per litre applied at the petrol pump.
“Our proposal will reduce the price of fuel by 26 cents a litre,”
he said.
“We are in a fuel-affordability crisis right now. They [customers] are coming to the bowser and they are shocked at what they are seeing.”
Mr Albanese did not rule out cutting the fuel excise, but said his focus is on shoring up supply.
Extracted in full from: https://www.abc.net.au/news/2026-03-28/government-backs-delivery-of-extra-fuel-cargoes/106506536
