Hardware stores across Australia are running out of fuel containers as Australians panic-buy petrol in response to escalating conflict in the Middle East. Bunnings has confirmed it is restocking jerrycans due to the demand surge, while regional fuel retailers report being completely cut off from supplies as major oil companies redirect stock to cities.
The Strait of Hormuz has effectively been closed following strikes on Iran, with vessel traffic showing a 70 percent drop as ships are stranded or forced to take alternative routes.This disruption has sparked a global oil price rise of about 10 per cent.Unleaded petrol prices in Sydney, Melbourne and Brisbane climbed to between 211.9 and 213.9 cents per litre on Tuesday, while diesel ranged from 172.9 to 189.9 cents.
The impact is most severe outside the cities.Independent petrol stations in regional New South Wales and Queensland have been hit by fuel shortages after widespread panic buying triggered major oil companies to cut supply. Sam Clifton, co-owner of Transwest Fuels, described the situation as an "unprecedented collapse in supply availability".In Tamworth, Transwest is completely out of unleaded and E95, while the major retailers are receiving preferential treatment from national wholesalers.
The consequences for agricultural producers are dire.Local farmers who bulk-buy fuel for tractors have been hit the hardest, with one farmer holding just 1000 litres of remaining fuel and warnings that animals will start dying and crops will suffer if supply dries up.The Victorian Farmers Federation has highlighted how modern farming relies heavily on liquid fuels to run machinery, harvest crops and transport food and fibre, and a secure fuel supply underpins the agriculture industry.
Energy Minister Chris Bowen told Parliament Australia currently has 34 days of diesel, 32 days of jet fuel and 36 days of petrol available, which are the highest reserves in 15 years. However,Australia's emergency strategic fuel reserve has been non-compliant with International Energy Agency requirements since 2012.Analysts warn petrol prices could jump by around 40 cents a litre, meaning a 60-litre tank would cost about $24 more to fill.
Authorities are urging restraint.Energy Minister Bowen has warned against panic buying, saying it will only make the situation worse.The NRMA has reported troubling instances of people trying to stockpile fuel at home, which creates danger and makes no economic sense.Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission, asking it to monitor fuel prices and ensure retailers are not price gouging.
The real challenge extends beyond immediate shortages.Australia imports roughly 90 per cent of its liquid fuel, meaning world crude oil prices have a direct impact on pump prices. Longer-term supply concerns and economic impacts will depend on how long Middle East tensions persist and whether shipping through the Strait of Hormuz resumes normal operations.