Rising global oil prices linked to the escalating conflict involving Iran are beginning to affect motorists and businesses across East Gippsland, with some local fuel outlets reporting increased demand and introducing limits on certain fuel purchases.
The conflict in the Middle East has unsettled global energy markets, with uncertainty surrounding shipping through key routes such as the Strait of Hormuz — a corridor that carries a significant share of the world’s oil supply. Economists warn that if disruptions continue, petrol prices in Australia could rise by as much as 40 cents per litre in the coming weeks as higher crude oil prices flow through to local markets.
In East Gippsland, some motorists have already begun noticing changes at the bowser. Service stations have reported heightened demand as drivers attempt to fill their tanks ahead of potential price increases.
Evans Petroleum said intense media coverage of the situation had triggered widespread panic buying across the fuel industry, placing pressure on supply chains.
“Due to the intense media coverage surrounding the current situation in the Middle East, we are experiencing extreme levels of panic buying across the fuel industry,” the company said in a statement.
“As a result, fuel suppliers across Australia are now starting to move to allocation, meaning supply is being carefully controlled and released in limited quantities.”
The company stressed there was no immediate shortage of fuel but said the volume it could collect and distribute was beginning to be restricted by suppliers.
“To clarify — we are not out of fuel. However, the amount we are able to collect and distribute is now starting to be restricted by our suppliers,” management said.
Evans Petroleum said the restrictions meant priority would be given to regular customers who genuinely required fuel, while also tightening rules around filling portable containers.
Under the guidelines, petrol can only be dispensed into approved containers no larger than 25 litres that are properly grounded. Diesel can only be dispensed into approved jerry cans or ute packs holding up to 400 litres, while IBCs or large 200-litre plastic containers are not permitted.
Service station operators say such measures are designed to prevent hoarding and ensure fuel remains available for everyday motorists and essential services.
For many East Gippsland businesses, particularly those reliant on transport and tourism, rising fuel costs could quickly become a significant concern. Tradespeople, delivery operators, charter businesses and tourism providers all depend heavily on petrol or diesel, meaning even modest increases can affect operating costs.
The agricultural sector is also expected to feel the pressure, with farmers warning that higher fuel prices often flow through to the cost of producing and transporting food.
Despite growing concern, the federal government has urged Australians not to panic buy fuel. Energy Minister Chris Bowen said the country currently holds more than a month of fuel reserves, describing supply levels as the strongest in more than a decade.
Officials say the surge in demand at service stations is largely being driven by fears of future price rises rather than an actual shortage of fuel.
Analysts say the situation will largely depend on how long the conflict continues and whether global oil transport routes remain disrupted.
