Over 100 fuel stations run dry across NSW: Panic buying causes diesel shortage amid supply strain

A growing fuel crisis has gripped Australia’s New South Wales (NSW), where at least 107 fuel stations have run out of diesel, according to state premier Chris Minns cited by Argus media. The shortages are not due to an absolute lack of fuel nationwide, but rather a surge in demand triggered by panic buying that has overwhelmed local supply chains.

Most of the affected outlets are independent fuel retailers that rely heavily on imports rather than long-term supply contracts. As demand spiked, importers began rationing fuel sales to non-contracted buyers, prioritizing existing contractual obligations and leaving smaller operators exposed.

Consumer behavior, rather than immediate supply shortages, is the primary driver of the crisis. Panic buying, fueled by fears of escalating global energy disruptions, has caused localized stockouts across NSW and other regions.


The situation has been exacerbated by global geopolitical tensions, particularly the ongoing conflict involving Iran, which has disrupted oil flows and increased volatility in fuel markets. This has led to higher prices and heightened public anxiety, further accelerating demand.

Australia’s fuel reserves and government response

Despite the shortages at retail stations, Australia’s overall fuel reserves remain relatively stable in the short term. As of March 10, the country held approximately:

• 30 days of diesel (gasoil)
  
• 37 days of gasoline
  
• 29 days of jet fuel
  

at normal consumption rates.

To ease pressure, the federal government has already released up to 762 million litres (4.8 million barrels) of gasoline and diesel from domestic reserves, according to the report. This move temporarily reduced minimum stockholding requirements and added several days’ worth of supply to the system.

Under NSW’s Energy and Utilities Administration Act, the state government has the authority to declare an energy supply emergency if disruptions worsen. Such a declaration would allow officials to:

• Direct fuel distribution to critical regions
  
• Compel suppliers to prioritize specific customers
  
• Take temporary control of fuel supply operations
  

These measures remain a contingency for now, but authorities have indicated readiness to act if the situation escalates.

While images of empty pumps have raised alarm, officials maintain that Australia is not facing an immediate nationwide fuel shortage. Instead, the crisis reflects a mismatch between supply logistics and sudden demand spikes.

However, analysts warn that continued global instability, combined with Australia’s heavy reliance on imported fuel, could deepen vulnerabilities in the coming weeks. If panic buying persists or international supply chains deteriorate further, localized shortages like those seen in NSW could become more widespread.