“Un-Australian” people exploiting war-driven fuel shortages have been blasted by the energy minister as he announced plans to release an extra 800 million litres of petrol and diesel from domestic reserves.

Petrol prices across Australia have soared to more than $2 a litre in response to the escalating war between Iran, the US, Israel and other countries across the Middle East.

Some regional areas in the country have reported fuel shortages.

The government was allowing fuel companies to keep less petrol and diesel in storage, meaning more will flow to pumps across the nation – particularly outside the major cities, Chris Bowen said.

The extra fuel will not flow immediately due to supply chain complexities.

“It’s not like they can just press a button and get fuel out the door, but it will make a difference going forward,” he told reporters in Sydney on Friday after the government’s National Security Committee met.

Supply and price issues were being driven by panic-buying motorists, not a lack of fuel coming in from overseas, Bowen said.

“I ask Australians, buy as much fuel as you need: no more, no less,” he said.

“I’ve seen (people) on Facebook marketplace filling up jerry cans, Bunnings running out of jerry cans … going on Facebook marketplace, selling fuel at inflated prices ­– that is un-Australian.

“It’s dangerous. It shouldn’t be done.”

The government has also relaxed quality standards for the next 60 days, allowing the use of fuel with higher sulphur levels, to boost the domestic market by 100 million litres of petrol per month.

Quality levels would remain very high by international standards, the government said.

Opposition energy spokesman Dan Tehan said the government should also consider easing diesel quality standards.

“Australia’s economy runs on diesel,” he told reporters in Sydney on Friday.

Tehan accused Bowen of deploying ad-hoc measures in response to the supply and price crunch.

 

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Resources Minister Madeleine King is travelling to Japan for talks with her international counterparts to discuss ways to shore up fuel supplies, among other issues.

“I’m hoping to achieve good discussions about where everyone else is sitting in addressing the fuel supply or demand issues they’re facing in their countries,” she told ABC News on Friday.

King said boosting supplies of critical minerals and rare earths – used in electric vehicle batteries, smartphones and sensitive defence technologies ­– would also be discussed.

The price of brent crude, the US oil benchmark, surged to more than $100 a barrel on Friday (AEDT) amid reports Iran had been laying mines in the Strait of Hormuz ­– a key trade route for oil from the region.

In his first public statement, Iran’s new Supreme Leader, Mojtaba Khamenei, declared that the Strait of Hormuz ­– which supplies a fifth of the world’s oil ­– should remain shut to put pressure on the country’s enemies.

US President Donald Trump responded with a post on Truth Social claiming that the US was by far the world’s largest oil producer and made a lot of money when oil prices went up.

King said Australia was still well-supplied with global fuel shipments and there were no indications future deliveries would be delayed.

“We do have the supply. There have  been difficulties in some areas because of the extraordinary demand, but we do have sufficient supplies,” she said.

Meanwhile, Air New Zealand has announced it is slashing 5 per cent of its flights, or about 1100 services, for two months as the ‌Iran war sends jet fuel prices surging and disrupts travel.

It led ‌other airlines including Qantas Airways, Scandinavia’s SAS and Thai Airways in announcing airfare hikes this week, blaming an abrupt spike in the cost of fuel that has rattled the global aviation sector.

–AAP