The government has created a dedicated fuel supply taskforce, signalling it recognises the gap between national-level supply assurances and the real shortages Australians are experiencing at regional service stations. Anthea Harris, former CEO of the Australian Energy Regulator, has been appointed as the Fuel Supply Taskforce Coordinator.
This is not a minor administrative shuffle. Since the conflict in the Middle East began a fortnight ago, the government has been working to protect Australians from the effects of the war. Iran has effectively closed the Strait of Hormuz, a critical passageway that carries 20 per cent of the world's oil supply, creating the first real test of Australia's fuel security arrangements in decades.
Consider what the taskforce is actually meant to do. Harris will lead the Fuel Supply Taskforce, drive coordination between the Commonwealth and the States and Territories on fuel security and supply chain resilience, provide consistent coordinated updates on fuel supply outlook, and act as a single convening point for fuel supply and forward planning. In practical terms, this recognises a fundamental reality: the Commonwealth is responsible for fuel security and supply, but it is the States and Territories that are responsible for distribution within their jurisdictions.
Yet therein lies the tension that makes Harris's appointment necessary. Service stations across regional Australia this week were rationing petrol. A petrol station operator in Robinvale, Victoria's far northwest, was forced to ration fuel after running completely dry, with the whole town described as "one of the fruit bowls of Australia" being out of fuel. When government says supply is healthy nationally but communities cannot fill their tanks, coordination has collapsed.
The government's position, articulated repeatedly this week, is that Australia has enough fuel; the problem is distribution during a demand spike. Albanese told Australians "please do not take more fuel than you need. That is how you can help." This framing places responsibility on consumer behaviour, and the facts partly support it. Localised shortages have been caused by local people buying excessively large volumes, with fuel suppliers limiting sales to contracted volumes, meaning spot buyers are getting turned away.
But the counter-argument is just as legitimate. Australia holds minimal reserves. At the start of 2026, Australia had an estimated 36 days of petrol, 34 days of diesel and 32 days of jet fuel, the largest stockpile Australia has had in 15 years, but it still may not be enough. Australia is among 32 member states that signed an International Energy Agency treaty in the 1970s committing to maintain 90 days of the previous year's net oil imports, but it is the only member that does not meet this obligation, having failed to comply since 2012. This is not a short-term supply management problem; it is a structural vulnerability that pre-dates the current crisis.
What the government has actually done is release emergency measures. Since the conflict commenced two weeks ago, the Albanese Government released up to 20 per cent of diesel and fuel reserves to help address regional shortages, and temporarily amended national fuel standards to keep more Australian-made fuels onshore. Around 100 million litres a month of new petrol supply that would otherwise have been exported will be blended into Australian domestic supply, with Ampol committing to prioritise this supply for regions of shortage.
The ACCC is also cracking down. The consumer watchdog will investigate fuel suppliers including Ampol, BP, Mobil Oil and Viva Energy over allegations of anti-competitive conduct. This matters because pump prices across the country have risen in line with wholesale costs, and in some cases even higher, rather than showing the usual lagged response.
Strip away the talking points and what remains is this: Australia is an energy exporting nation that cannot reliably fuel itself during a global disruption. Harris's appointment addresses the immediate coordination problem. What it does not address is whether the government will commit to the long-term investments in onshore reserves, refining capacity and domestic shipping that would make Australia resilient to the next crisis. That is a question for years, not weeks.