More than 50 industry and government leaders convened for a fuel security roundtable in NSW, chaired by the state's Minister for Energy, Penny Sharpe, with Premier Chris Minns in attendance. The meeting brought together representatives from transport and logistics, fuel, agriculture, local government, mining, unions and consumer protection groups.
The roundtable reflects growing pressure on fuel supplies across Australia. The discussion centred on fuel security challenges arising from the conflict in the Middle East, which has disrupted critical shipping routes. While the Federal Government is responsible for Australia's fuel supply and has advised that national fuel stocks remain secure, the roundtable agreed to prioritise immediate actions by the NSW Government and industry to address local distribution issues and minimise price impacts for consumers.
The Roundtable heard from NSW Farmer's Federation, Country Mayors Association and other regional representatives about challenges facing the bush, with specific concerns raised around the supply of diesel to bulk fuel users and some petrol stations. It was agreed to hold further conversations on regional issues in the coming fortnight to focus on fuel shortages, price rises and potential impacts on fertiliser for the upcoming winter sowing season, when fuel and fertiliser demand is highest.
Australia's underlying vulnerability became clearer in recent days. At the start of 2026, Australia had an estimated 36 days of petrol, 34 days of diesel and 32 days of jet fuel, representing the largest stockpile Australia has had in 15 years, but still may not be enough. Australia is the only member of the IEA that does not hold the mandatory 90-day fuel reserve requirement, something the country has failed to meet since 2012.
This vulnerability reflects decades of policy choices. In 2005, Australia had eight operating oil refineries. Today, only two remain: the Ampol Lytton refinery in Brisbane and Viva Energy's Geelong refinery, which supply less than 20 per cent of Australia's liquid fuel demand. More than 90 percent of refined petroleum products consumed domestically are imported, largely from Asian refineries that themselves rely heavily on Middle Eastern crude.
The Federal Government has already taken action. Climate Change and Energy Minister Chris Bowen announced the government will temporarily lower fuel quality standards for 60 days to allow higher-sulphur fuel to be sold, which will add roughly 100 million litres to the market each month. Up to 762 million litres of petrol and diesel will be released from domestic reserves.
Yet even these measures face complications. Three oil tankers were hit by Iranian fire as they attempted to pass the Strait of Hormuz, with Iran's leader vowing to keep the strait closed and drive oil to US$200 a barrel while the joint US-Israeli assault continues. The narrow channel between Iran and Oman normally carries around one fifth of global oil and gas supply, making it one of the most important energy chokepoints in the world.
The fuel situation illustrates a genuine policy tension. Australia's long-term economic strategy has favoured importing cheaper refined fuel from large Asian refineries rather than maintaining smaller, costlier domestic operations. This approach worked as long as global supply remained stable. Now, however, that vulnerability has been exposed. Regional farmers report shortages at independent distributors. Some petrol stations have limited sales to $50 per vehicle. Managers of mining operations hold only five days of fuel supply because storage capacity remains limited.
The NSW roundtable represents pragmatic crisis management, yet cannot address fundamental structural issues in the short term. With roughly a month of petrol and diesel available under normal conditions, the system functions only because imports arrive continuously. Rebuilding refining capacity, establishing stronger fuel reserves, or securing guaranteed regional supply partnerships all require time and substantial investment. What officials and industry can do now is coordinate distribution more efficiently and discourage panic buying that exacerbates local shortages.
For West Australians watching this unfold, the picture carries particular significance. The state has no oil refineries, meaning fuel availability depends entirely on imported supplies and interstate transport networks. Some junior and mid-tier mining companies were maintaining approximately five days of fuel supply during the March 2026 crisis period, representing a critical vulnerability threshold where operational decisions become binary: limit fuel consumption or maintain full production schedules while hoping suppliers can restore delivery.
The real test comes next. If the Middle East conflict drags on beyond weeks, as some analysts warn it may, Australia's limited reserves will deplete faster than expected even with emergency releases. The government has ruled out formal rationing for now, but the possibility hovers in the background. Whether a meeting room in Sydney produces practical solutions depends on whether industry can genuinely coordinate supply or whether market forces and panic buying pull in different directions.