Panic Buying Leads to Fuel Shortages Across Australia

Dozens of service stations in Australia have run out of petrol due to panic-buying triggered by ongoing conflicts in the Middle East, which have disrupted fuel prices. The National Roads and Motorists' Association (NRMA) has criticized regulators for failing to prevent price hikes, as wholesale demand drives fuel prices to unprecedented levels on the east coast. As of Monday morning, 32 out of 3,000 service stations in New South Wales (NSW) reported shortages of at least one fuel type, affecting small towns significantly.

The Guardian

Premier Chris Minns stated that while NSW has sufficient fuel, distribution challenges have arisen as motorists stockpile fuel. The Victorian Farmers Federation president, Brett Hosking, noted that entire towns, including Wedderburn and Bonnie Doon, have run dry. He expressed concerns about the prioritization of fuel deliveries, suggesting that regional areas may not receive adequate supplies amidst high demand from urban centers.

The Guardian

In Western Australia, two service stations in Manjimup reported shortages, and local industrial fuel suppliers have limited sales to 10,000 litres per customer. This has particularly affected independent stations, which struggle to access fuel as major suppliers like Ampol, BP, Mobil, and Viva Energy prioritize regular customers.

The Guardian

The NRMA's spokesperson, Peter Khoury, indicated that retail prices for petrol in major cities such as Sydney, Melbourne, and Brisbane are expected to remain near record highs, with unleaded petrol prices exceeding 230 cents per litre in Darwin and Melbourne. The NRMA criticized fuel stations for raising prices early in the conflict, leading to a "permanent high point" in fuel costs.

The Guardian

Shortages have also impacted urban retailers, with some 7-Eleven locations in Canberra running out of fuel due to sudden bulk-buying. The NSW government has convened crisis talks with fuel suppliers to address the situation, emphasizing the need for better information sharing to direct fuel where it is most needed.

The Guardian

The president of NSW Farmers, Xavier Martin, highlighted the risk to food production due to fuel shortages, stating that agricultural machinery relies on diesel, which has been overlooked in the current crisis. Stuart King, the mayor of Swan Hill, echoed these concerns, noting that temporary workers in the region depend on fuel for their daily commutes to farms. He called for a reduction in fuel excise, similar to measures taken in 2022, as prices in his area have surged by 30% in just two weeks.

The Guardian

The rising fuel prices are anticipated to disproportionately affect low-income households, which allocate approximately 10% of their income to petrol expenses, according to analysis by the e61 Institute. The federal government has ruled out changes to fuel excise, further complicating the situation for vulnerable populations.

The Guardian

• “We are now in a permanent high point … in those three cities,” — Peter Khoury, NRMA Spokesperson

The Guardian

• “If you haven’t got fuel, you can run out pretty quickly, which means then you can’t get to work,” — Stuart King, Swan Hill Rural City Council Mayor

The Guardian

• “‘I don’t think I’ll be able to afford the travel and I’m already stretched as it is, so I might just work on Saturdays instead of playing sports,’” King said.” — Local Resident

The Guardian

This ongoing fuel crisis highlights the interconnectedness of global events and local economies, revealing vulnerabilities in fuel supply chains and the potential for significant social impacts.

The Guardian