Hundreds of Aussie petrol stations are out of fuel

More than 500 service stations across Australia have run out of petrol or diesel as panic buying intensifies, with the federal government insisting the shortages are being driven by demand spikes rather than a breakdown in fuel supply.

Fuel shortages are becoming increasingly visible across Australia, with more than 500 service stations now unable to supply at least one grade of petrol or diesel.

In a state-by-state update to federal parliament on March 24, Minister for Climate Change and Energy Chris Bowen said New South Wales was the worst affected, with at least 289 service stations without petrol or diesel.

Of those, 164 sites had run out of diesel specifically. This comes at a time when many fuel pumps are charging more than $3 per litre for diesel.

Victoria recorded 162 affected service stations, with Victorian Energy Minister Lily D’Ambrosio attributing the situation to consumer behaviour rather than a lack of fuel entering the country.

“These shortages are being caused by panic buying, not because fuel isn’t coming into Australia,” D’Ambrosio told ABC Radio Melbourne.

Queensland has also been hit, with 55 locations without diesel and a further 35 unable to supply regular unleaded petrol.

South Australia recorded 46 service stations without one or more fuel grades, while Western Australia and Tasmania each reported six affected sites.

Tasmania also had one service station without diesel.

The Australian Capital Territory was the only jurisdiction to report no fuel shortages as of yesterday afternoon.

The growing number of empty bowsers has reignited discussion around fuel rationing provisions under guidelines created in 2019 through the Liquid Fuel Emergency Act of 1984.

This act gives the government power to ration fuel during a declared national emergency. While the Labor Minister for Climate Change and Energy has ruled it out for now, the mechanism is sitting ready.

Under sections 23–24, the Minister can impose a $40-per-transaction cap at the pump, which at current average prices of around $2.50 per litre gets you roughly 16 litres.

Most small cars have a circa-40 litre fuel tank, mid-sized vehicles around 50 litres and larger vehicles have between 60 and 100 litre fuel tanks.

Not everyone would be subject to the rationing cap, however.

Emergency services (police, ambulance, fire, defence, SES, taxis, public transport etc) are classified as essential users and would be exempt from rationing.

Early-stage voluntary measures like carpooling and cutting non-essential travel would come first, but if the Governor-General declares a national liquid fuel emergency, the $40 shutoff kicks in automatically at the bowser.

“The National Fuel Emergency Act of 1984 has never been invoked – not through the first two Gulf Wars or Covid,” said Bowen.

“I wouldn’t exercise those quite remarkable powers unless I had pretty strong advice that it was necessary in the circumstances,” added the Minister for Energy.

The federal government has confirmed it is not considering fuel caps even while more than 500 service stations are affected – a significant figure which represents around eight per cent of Australia’s total service station network.

Bowen reiterated that fuel supply into Australia remains sufficient, following comments made by PM Anthony Albanese last week.

“My message to Australians as well is to not take more fuel than you need. Think of others. Be a good neighbour, a good community member, and a good Australian,” said Albanese.

“It’s not the Australian way. Just take what you need, be sensible.”

Authorities warn that panic buying can worsen local shortages and strain supply chains, even while national supply remains stable.

With fuel continuing to arrive into Australia at present the government is clearly not ready to take any knee-jerk actions.

However, the core issue that is putting pressure on fuel – which will start flowing into other costs such as groceries – is the war in Iran, which is sending global fuel prices northward.

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