Labor blames fuel shortage on panic buying

Australia’s worsening fuel shortage has been blamed on panic buying, as Federal Energy Minister Chris Bowen urges motorists to stop hoarding fuel and global tensions push oil prices higher and strain local supply. Some states have now introduced new laws in an attempt to stop price gouging from fuel suppliers.

Energy Minister Chris Bowen has issued a strong warning to motorists amid growing fuel shortages, calling on Australians to stop panic buying as global oil prices surge.

The pressure comes as escalating conflict in the Middle East heightens fears around disruption to key shipping routes used to transport oil and refined fuel into Australia, pushing petrol and diesel prices sharply higher.

“As I’ve said, what we want is Australians to buy as much fuel as they need, not more, not less,” Bowen told ABC news.

“Panic buying does not help the situation, panic buying very much causes the situation.”

Predictions of fuel prices soaring beyond the $2 per litre mark have proven accurate, with many motorists across Australia’s largest cities now paying well above that figure.

Some analysts are predicting fuel prices will surge above $3 per litre, especially for diesel, with forecasts of high fuel prices for the rest of the year.

This, together with a recent interest rate rise, is expected to put the squeeze not only on Aussie consumers, but those right across the globe.

Pricing data from the Australian Competition and Consumer Commission reveals daily average retail petrol prices across the five largest cities hit 219.7 cents per litre on March 11 – an increase of 48.8 cents per litre since February 20.

In a bid to prevent extreme price hikes, Victorian Premier Jacinta Allan announced new laws forcing petrol stations in Victoria to lock in fuel prices for 24 hours ahead of time, preventing them from raising prices above that daily cap.

Meanwhile, the Federal Minister for Industry, Tim Ayres, attempted to reassure Australians by stating the country currently holds around 36 days of petrol supply and 32 days of diesel in reserve.

“We are well prepared for these global events, as unwelcome as they are,” Ayres said.

Despite those assurances, long queues have formed at service stations nationwide as motorists rush to fill vehicles and jerry cans – even as prices remain at record highs.

On March 17, the Albanese government released 20 per cent of Australia’s fuel reserves in an effort to ease supply pressures.

Deputy Prime Minister and Defence Minister Richard Marles said the move was designed to “put more fuel supply” into the Australian market.

However, regional areas continue to be hit hardest, with many petrol stations running dry as restocking struggles to keep up with what industry sources describe as a “permanent high” in demand caused by ongoing panic buying.

The release of fuel reserves may provide short-term relief at the fuel bowser, industry experts warn supply pressures could persist if global tensions continue and consumer panic continues unabated.

The government is urging calm, warning that continued fuel hoarding risks prolonging shortages – particularly in regional Australia – which would keep fuel prices elevated for longer.