Prime Minister Anthony Albanese has established a national Fuel Supply Taskforce to coordinate distribution and manage potential rationing as Australia’s energy security faces its most significant threat in decades.
The move follows warnings from Malaysia, Australia's primary crude oil supplier and third-largest source of refined petrol, that shipments may be disrupted if the conflict between Iran, Israel, and the United States persists.
A spokesperson for the Malaysian embassy confirmed that while trade remains a priority, the government must ensure domestic stability before fulfilling international demands, especially as oil prices surge toward US$111 per barrel.
The crisis underscores Australia’s precarious reliance on international markets, with the nation importing approximately 90% of its fuel.
Malaysia alone provided $6.9 billion in refined products and $4.4 billion in crude last financial year, accounting for roughly a quarter of Australia's total crude imports.
The regional instability has already triggered a domino effect; China has implemented strict export curbs, and South Korea—Australia’s second-largest supplier—has capped petrol exports at 2025 levels to protect its own economy.
Led by climate and energy official Anthea Harris, the new taskforce will oversee state and territory cooperation to prevent local shortages.
Despite the Prime Minister’s pleas for citizens to cease "panic hoarding," the involvement of Foreign Minister Penny Wong in high-level diplomatic talks suggests a growing urgency to stabilising the supply chain.
With 70% of South Korea’s crude also originating from the Middle East, Australia's transport and energy sectors remains highly vulnerable to further escalations abroad.