Fuel fears put brakes on travel as supply hopes rise

April 3, 2026 03:30 | News

Hundreds of service stations around Australia are out of petrol leading into the Easter long weekend but a reduction in fuel prices will give some hope to anxious travellers.

Fuel supplies and imports are remaining stable, Australian Institute of Petroleum chief executive Malcolm Roberts says, with the spike in demand for petrol and diesel at the start of the Iran war beginning to ease.

Of the more than 8000 service stations around the country, 653 – or eight per cent – are missing one or more grades of fuel.

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Petrol and diesel prices have started to come down following the excise cut. (Joel Carrett/AAP PHOTOS)

“That’s been a bit of an improvement from where it has been, but there’s undoubtedly local short-term problems,” Mr Roberts told AAP.

“The distribution system’s been working overtime for a month now.

“There’s essentially no more tankers, no more drivers than what we had four weeks ago.”

Motorists will get an additional 5.7 cents a litre off their fuel until June 30 as part of a deal between federal and state governments to forgo some GST revenue, Prime Minister Anthony Albanese announced on Thursday.

The move follows a cut to the fuel excise, reducing wholesale petrol and diesel costs by around 26 cents a litre.

Petrol graphic
Petrol prices were heading in one direction, before the excise cut. (Susie Dodds/AAP PHOTOS)

Opposition Leader Angus Taylor used a video address on Thursday night to call for a federal budget response to the fuel crisis and again urged the government to be more transparent about the availability of petrol and diesel supplies.

“In a crisis, Australians deserve a government that’s transparent and gives you the facts every day,” he said.

“The prime minister and treasurer must use the upcoming budget not just to respond to this crisis, but to set our country up for the future.”

While the price drops may provide some relief, the tourism sector remains under pressure, with motorists anxious about the cost and availability of fuel in some destinations.

Caravan parks more than a few hours away from the city were suffering the most from a decline in bookings, Caravan Industry Association general manager of research and insights Peter Clay told AAP.

“(Travellers are asking) is there fuel available? Is there diesel available where I’m going?” he said.

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There’s likely to be less cars on the roads this Easter because of fuel uncertainty. (Darren England/AAP PHOTOS)

The cancellation rate for Easter normally sits at about 30 per cent, he said, and that had ticked up this year because of the fuel crisis.

Hotels have also taken a hit as Australians and foreigners cut back on travel, facing a decline in bookings of up to 10 per cent across the east coast capital cities compared to the same time in 2025, Accommodation Australia boss James Goodwin said.

“If you can afford it, if you are in a position to be able to travel, then don’t put off that travel,” he told AAP.

“Just make sure that you’re looking around, that you’re going to a place where you know that you can get the fuel, or make sure you fill up before you leave.”

AAP News

Australian Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national newswire and has been delivering accurate, reliable and fast news content to the media industry, government and corporate sector for 85 years. We keep Australia informed.

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