Federal government to avoid 'harsher measures and restrictions' ahead of national cabinet meeting to address Australia's fuel crisis

Prime Minister Anthony Albanese will host an urgent national cabinet meeting today alongside state and territory leaders to formulate a federal response to Australia's escalating fuel crisis.

Today marks the second cabinet meeting in Canberra since the war in the Middle East began, and over a month since the US-led strikes on Iran triggered a global oil crisis.

Australia's supply of petrol and diesel is running dry – despite assurances from the government that we have well over a month's worth of fuel in reserve – while the cost of unleaded has reached over $2.60 per litre and is now over $3 per litre for diesel.

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The agenda today is expected to range from measures to control the distribution of fuel in Australia to free public transport and working from home.

Treasurer Jim Chalmers offered a brief preview of today's meeting and said there needed to be a "coordinated and consistent" response around the country.

"The best way to avoid the kind of harsher COVID-style measures is to do that work," Chalmers told ABC's News Breakfast.

"And the better we do on the front end of this challenge we have in our economy, the more likely we are to avoid some of those harsher measures and restrictions down the track."

READ MORE: 'Worse than COVID': The stark warning as costs surge

The PM last week also ruled out any COVID-style mandates to address the unfolding crisis.

"I don't want things to be mandated, common sense should apply as well," Albanese said on Friday.

"This isn't toilet paper that's been piled up in some garages. It's actually fuel.

"That's not sensible on a range of levels. One, it's not doing the right thing by your fellow Australians. But importantly, as well, it can be dangerous."

The Australian Chambers of Commerce and Industry (ACCI) has urged the government to implement a four-point plan to address the fuel shortage.

This includes securing the supply of petrol by working with allies in the Gulf region, and working with distributors to get fuel out to all Australians more quickly.

It also called on the government to reduce the heavy vehicle road user tax from 32.4 cents a litre to relieve pressure on transport businesses and owner operators.

Other measures are already in the works.

Energy Minister Chris Bowen will today introduce new powers to parliament, which will allow the government to use public funds to chip in and underwrite fuel costs for suppliers.

"Put simply, we will use Export Finance Australia to underwrite the purchase of shiploads of fuel that will add to supply here in Australia," the PM said last week.

The government is also in talks with local and international fuel suppliers "to help firm up and source new cargoes required to keep Australia moving".

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