Canberra, March 14, 2026 – The Europe Today: Australia’s Energy Minister Chris Bowen has warned that rural and regional parts of the country are experiencing “real and unacceptable shortages” of fuel as global oil prices surge following the ongoing US-Israel conflict with Iran.
Speaking at a press conference on March 14, Bowen said the federal government has decided to release fuel from its emergency stockpile to help meet growing demand in regional areas. However, he cautioned that the additional supply would not reach the market immediately.
The minister explained that the shortage is not due to supply disruptions but rather a sharp rise in demand. According to Bowen, Australia has received all scheduled shipments of petrol and diesel, but consumption has increased dramatically.
“There has been a massive explosion in demand,” he said, noting that demand has doubled at fuel terminals across the country.
“This has led to shortages for farmers and people in regional areas in particular. The government is working closely with the industry to address the issue as quickly as possible,” Bowen added.
Officials said Australia currently holds about 2.7 billion liters of diesel, equivalent to roughly 30 days of supply.
The energy crisis linked to the regional conflict is already raising concerns among key industries. Farmers have warned that higher fuel costs could force them to reduce planting, potentially affecting food production. Meanwhile, trucking companies say rising fuel prices are likely to push transportation costs higher, which could eventually be passed on to consumers.
Airlines are also feeling the impact. Qantas Airways Ltd reported that jet fuel prices have increased by as much as 150 percent over the past two weeks, prompting carriers to raise ticket prices.
Despite the surge in costs, Bowen said Australia is not currently facing a jet fuel shortage. The country has approximately 800 million liters of jet fuel reserves, enough to cover around 29 days of supply.
He added that the government remains in close contact with Virgin Australia and Qantas, the nation’s two largest airlines, to monitor the situation.
“They have fuel on hand for the immediate and foreseeable future,” Bowen said, adding that authorities will continue to closely monitor global supply developments to ensure airlines remain adequately supplied.
