Panic buying hits Sydney as fuel prices soar amid Hormuz Strait jam; motorists stockpile in NSW

The average fuel prices in New South Wales, Australia in March 2026 after the Gulf crisis have surged from A$1.60 (US$1.12; RM4.41) a litre a month ago to A$2.23 (RM6.14) for petrol while diesel has gone even higher from an average A$2.62 (RM7.22), according to monitoring service Fuel Watch. — Picture by Choo Choy May

Monday, 16 Mar 2026 9:00 PM MYT

SYDNEY, March 16 — The cheapest fuel had run out and a man filled red jerry cans at a petrol station on Sydney’s metropolitan fringe on Monday as drivers anxious about soaring prices queued up.

Panic buying since Iranian attacks on ships effectively closed the Strait of Hormuz in response to the US-Israeli strikes has seen petrol prices soar half a world away in Australia – even as the government insists fuel shipments are arriving on schedule.

“I can drive up to 500 kilometres a week,” said landscaper Emma Futterleib as she filled up her diesel pickup at a service station in Penrith on the western outskirts of Sydney.

“It hurts the budget, that’s for sure. Just trying to be a bit careful on how much we are spending on groceries,” she said.

Australia is heavily reliant on fuel imports from Asia, with many accustomed to driving vast distances for work or leisure.

In its most populous state of New South Wales – home to sprawling metropolitan Sydney – census data shows 1.6 million people drove to work, compared to just over 140,000 taking public transport.

As the oil price soared past US$100 (RM393.30) a barrel, government data showed Australia had 37 days’ supply of petrol and 30 days supply of diesel.

Yet price gouging by retailers combined with a doubling of demand as motorists stockpile fuel has seen “real and unacceptable shortages”, Energy Minister Chris Bowen said at the weekend, after the government moved to increase supply to rural areas.

Futterleib told AFP she drove an hour from a rural town where she said farmers are worried about diesel shortages impacting crops and food supply.

“There are trucks off the road all over the country. Big diesels are the backbone of Australia,” she said.

Chris Harald said he “had a heart attack” when he stopped to refuel after driving 400 kilometres from the coast to Penrith to visit family.

“If we still have fuel in the country, why has all that fuel gone up? It’s disappointing to see,” he told AFP after filling up with diesel.

Nearby, a price board showed the cheapest petrol type had sold out for the day.

Average fuel prices in New South Wales have surged from A$1.60 (US$1.12; RM4.41) a litre a month ago to A$2.23 (RM6.14), according to monitoring service Fuel Watch.

Diesel has reached higher, an average A$2.62 (RM7.22).

Hussein Dia, professor of transport technology at Swinburne University of Technology, said “panic buying is a big issue”.

“In rural areas it is more acute. They are running out of fuel and diesel,” he told AFP.

Mohammad Afzali, an air conditioner mechanic who fills up his van every two days as he drives to customers, said his petrol costs have doubled.

It’s a squeeze so tight Afzali says he is considering stopping his business as a result.

“It’s very hard. Everything is so expensive,” Afzali said.

“If prices keep going up, what should I do?” — AFP