Australia says fuel supply levels stable, prime minister urges residents to avoid panic buying

Prime Minister Anthony Albanese on Thursday urged Australians to avoid panic buying of petrol and diesel, which he said had led to shortages in some rural regions, and stressed the nation's fuel supply levels remained stable.

Australian state governments are grappling with fuel shortages triggered by global supply disruptions due to the Iran war. Albanese said the federal government had already taken steps to ensure an uninterrupted supply of fuel into the country.

"Our fuel supply is currently secure. However, I want us to be over-prepared," Albanese told reporters, calling on Australians to buy only what they needed.

"My message to Australians is please do not take more fuel than you need. That is how you can help, that's the Australian way."

Fuel demand has doubled in some regions in recent days resulting in localised shortages even as shipments continue to arrive as scheduled, Albanese said following a meeting with state and territory leaders.

The supply concerns come as the conflict in the Middle East intensified on Wednesday as Iran accused Israel of striking its facilities in the South Pars gas field, the world's biggest, prompting Iranian retaliatory strikes on oil and gas targets across the Gulf.

The escalation has pushed global oil prices higher and heightened fears of supply disruptions. O/R

Albanese said his government would roll out additional measures in the coming days to safeguard fuel supply.

Anthea Harris, the former boss of the Australian Energy Regulator, has been appointed as the national fuel supply taskforce coordinator to tackle shortages and improve the domestic fuel supply chain, Albanese added.

After widespread concerns among consumers over fuel pricing and supply issues, Australia's competition regulator on Thursday began an investigation into allegations of anti-competitive conduct by major fuel suppliers including Ampol ALD.AX, BP's Australian unit, Mobil Oil Australia and Viva Energy's unit, which operates the Shell fuel stations in Australia.

Albanese warned a prolonged conflict would further strain global energy markets and weigh on Australia's economy.

In its latest Financial Stability Review released on Thursday, the Reserve Bank of Australia warned the war was a material risk to the Australian economy, though it said domestic banks remained well-positioned to support growth in the event of a significant downturn.

-Renju Jose/Reuters