Perth metro diesel was $1.82 a litre in January. By mid-March it had hit $2.48. Out in the Kimberley it’s $2.59. At Uluru, a listener reported paying $3.75.
If you’re running a diesel 4WD, you already know this. What you might not know is why it happened, and whether it’s going to get worse.
Australia was not prepared for this
The short version: Australia imports 90% of its fuel. The Strait of Hormuz carries roughly 20% of the world’s oil supply. When that route was disrupted earlier this year, we had almost nothing in reserve.
The International Energy Agency sets a minimum of 90 days of fuel reserves for all member nations. Australia hasn’t hit that target since 2012. Every other IEA member has met the minimum. We haven’t.
Back in 2002, Australia held 310 days of onshore fuel reserves. That was possible because we had around a dozen refineries, each with large storage facilities attached. Over the following two decades, we shut them down one by one. Importing was cheaper than refining. We are now down to two refineries, one in Geelong and one in Queensland, with almost no large-scale storage infrastructure left.
Current government figures put petrol reserves at 38 days, diesel at 34 days, and jet fuel at 32 days. But those figures include fuel still sitting on tankers heading towards Australia. The IEA does not count in-transit fuel in its calculations, and for good reason: if those tankers don’t arrive, that fuel is not accessible. Our actual onshore reserves are lower than the headline numbers suggest.
The energy minister has estimated it would cost around $20 billion over four years to build the storage infrastructure needed to hit the 90-day requirement. Every government since 2012 has decided that is too expensive. We are now living with the consequences.
Servos running dry in the regions
This is not abstract. In New South Wales, 107 fuel stations ran out of diesel. Forty-two ran out of fuel entirely. Independent servos have been hit hardest. The major branded chains appear to have been prioritised in the supply chain.
In remote areas, some stops have imposed $20 fill limits. At $3 a litre, that is less than seven litres. It will not get you far.
The Nullarbor Roadhouse was sitting at $3.29 for diesel at the time of recording. Darwin was above $2.30. The Pilbara and Gascoyne regions were at $2.56. These figures are still moving.
Cars and utes account for 26% of Australia’s diesel consumption. Trucks and mining account for 48%. Regional areas are getting squeezed from both ends: lower supply coming in, and massive ongoing demand from industry. The further from a coastal port you are, the worse it gets.
What the government has changed
Two things. First, fuel standards have been temporarily lowered. Petrol will now carry a higher sulphur content, and the diesel flash point has been reduced by one degree Celsius (from 61.5 to 60.5). The stated aim is to widen the pool of suppliers Australia can accept fuel from quickly. The government says neither change will affect engine longevity or emissions. Together, they add roughly two days to national reserves.
Second, Victoria introduced next-day price transparency laws effective 24 March. Fuel stations must report their maximum prices for the following day by 2pm. Those prices are then locked in overnight. Non-compliance carries fines of up to $24,000. Any standard fuel monitoring app will show those locked-in prices for Victorian stations.
What to do before your next trip
The planning required for remote travel has changed. A few things to act on now.
Check fuel availability before you leave. Apps including the NRMA app, Petrol Spy, Fuel Map and FuelWatch carry current pricing and stock data. For remote stops specifically, call ahead. Data can lag reality, and a servo that was stocked yesterday may not be stocked today.
Know your tank capacity and your fuel economy. A 160-litre tank at $3 a litre costs $480 to fill. Running at 100km/h rather than 110km/h on the highway delivers a meaningful improvement in fuel economy. For most large diesel 4WDs, the difference can be close to 20%.
If you see a bowser changing its displayed price while you are at the pump, photograph it and contact the ACCC. Mid-fill price changes are illegal. The ACCC does pursue them.
And if a servo has fuel available in a remote area, consider topping up even if you are not empty. $20 limits mean you cannot rely on getting a meaningful top-up once you need it.
Does this change the case for electric?
The BYD Shark 6 is already the third best-selling ute in Australia. Toyota has announced a full electric ute for 2027. The Chery KP31 is being marketed as the world’s first diesel plug-in hybrid ute, reportedly arriving in Australia this year.
Sustained prices at this level will push more buyers to consider alternatives. For urban and suburban driving, the EV case is real and growing stronger by the month.
For remote travel, the calculus is different. You can carry jerry cans of diesel. You cannot carry electricity. Charging infrastructure in outback Australia does not exist in any meaningful way for long-range travel, and field repairability remains a genuine practical concern. A generator can keep an EV topped up in camp, but generators run on fuel.
The 4WD community is watching the next few months closely. If prices hold at current levels, buying decisions will shift. Whether that marks a structural change in how Australians think about diesel 4WDs, or a temporary disruption they wait out, remains to be seen.
Hear the full conversation on The 4WD Podcast
The team at The 4WD Podcast spent a full episode working through the numbers behind the fuel crisis: reserves data, servo closures, the EV question, and what it means if this lasts another six months. Worth a listen if you want the full picture.
Find more episodes at The 4WD Podcast.