Australia to convene leaders' meeting as fuel shortages hit rural areas

Australian Prime Minister Anthony Albanese will hold a meeting with state and territory leaders on Thursday as governments grapple with fuel shortages in parts of rural Australia, triggered by global supply disruptions due to the Iran war.

The conflict in the Middle East has pushed up oil prices and heightened concerns over supply after attacks on energy facilities in the Gulf. The Strait of Hormuz, one of the world's most critical energy chokepoints and a key route for global shipping, has remained largely shut.

Albanese said on Wednesday the National Cabinet would convene online to strengthen coordination between the federal and state governments, with a focus on supporting affected communities, particularly in rural towns.

"We want to make sure that we do everything we can to shield the Australian economy, households and businesses from the worst of global uncertainty," Albanese said in a speech.

Australia last week announced it would release petrol and diesel from its domestic reserves in an effort to stabilise supply chains and ease shortages across regional centers.

Energy Minister Chris Bowen said Australia's fuel supply remained stable, but he acknowledged rural areas were facing shortages due to a sharp spike in demand and urged people to avoid panic buying.

"Any supply chain is going to struggle with that," Bowen told ABC News on Wednesday. "If demand shoots up, doubles in a few days, there's going to be shortages."

The national cabinet, established during the early stages of the COVID-19 pandemic, is chaired by the prime minister. It last met on January 30 to discuss hospital funding, and again in December following the Bondi terror attacks.

-Renju Jose/Reuters