Australia Mulls Fuel Caps Amid US War on Iran Supply Crunch

By Staff, Agencies

Australia’s federal government considered retail fuel rationing during an emerging supply crisis earlier this year, according to freedom of information documents, as the International Energy Agency [IEA] warned oil markets were heading toward the “red zone” by August.

The Guardian Australia, citing Department of Climate Change, Energy, the Environment and Water [DCCEEW] papers, reported officials considered contingency measures including daily fuel purchase limits per vehicle during severe shortages.

The documents indicate rationing was seen as a worst-case option, not an immediate step, though IEA warnings of tightening global supply have renewed concerns over fuel availability amid West Asian export constraints.

Documents from Feb 21–Mar 17 show Australia prepared contingency fuel plans during the early US-"Israeli" war on Iran, though rationing powers under the Liquid Fuels Emergency Act were ruled out by Energy Minister Chris Bowen and PM Anthony Albanese, who said the 2006 framework would not be implemented.

March 13 Nosec minutes show officials discussed possible fuel rationing and public messaging, with planning advancing by March 17, while March 9 documents already listed rationing options under emergency powers.

The government relied on voluntary industry measures, while boosting reserves with 600 million litres of diesel and 100 million litres of jet fuel, and allocating a $10 billion fuel security package to strengthen supply resilience.

An internal paper outlined possible fuel rationing in severe shortages, prioritizing essential users, with mandatory controls only if voluntary measures failed and after consultation with states and industry.

Fuel shortages spread across Australia early in the US-led war on Iran, with dozens of stations running dry amid panic buying. By mid-March, shortages hit multiple states, prompting emergency stock releases and prioritization of regional supply.