Australia fuel stocks decline amid Middle East oil crisis

Australian diesel and jet fuel stocks have declined to levels seen in March 2026, driven by limited onshore tank farm capacity and the need for increased regional take-away capacity. Minister for Climate Change and Energy Chris Bowen stated that Australia currently holds 32 days of diesel supplies, 41 days of petrol, and 30 days of jet fuel. He noted that 41 ships are currently en route to Australia, with 3.3 billion litres of fuel scheduled for delivery over the next four weeks.

The domestic supply situation is being exacerbated by escalating tensions in the Middle East. Following drone strikes by Yemen-based Houthi militants, Saudi Arabia was forced to shut down a 1,200-kilometre crude pipeline used to bypass the Strait of Hormuz. This disruption has contributed to international oil prices rising above US$100 a barrel.

Rising crude costs are already impacting Australian motorists, with the national average price of regular unleaded rising 39 per cent since July. Industry experts suggest the Albanese government may face increasing pressure to implement a second federal fuel excise cut this year to mitigate the impact of rising pump prices on consumers.