Diesel prices across Australia have climbed rapidly in early March, with industry data showing terminal gate prices increasing by more than 50 per cent in major capital cities within a two-week period.
According to the Australian Institute of Petroleum, diesel terminal gate prices rose between 2 and 13 March 2026 by around 50 per cent nationally. Sydney recorded a 50.34 per cent increase, while Melbourne rose 50.85 per cent, Brisbane 50.18 per cent, Adelaide 50.31 per cent and Perth 50.55 per cent.
By Friday 13 March, the national terminal gate price for diesel ranged between 248.9 cents per litre and 253.6 cents per litre.
Earlier data from the Container Transport Alliance Australia had already indicated a rapid rise in wholesale diesel prices, with average terminal gate prices increasing by around 30 per cent in the week between 4 and 10 March.
Industry briefings with the Federal Government indicate the current pressures are largely being driven by demand rather than supply shortages. Some fuel purchasers have reportedly increased their orders to four or five times their usual volumes as concerns grow about international supply conditions.
Federal ministers including Climate Change and Energy Minister Chris Bowen and Infrastructure and Transport Minister Catherine King met with industry representatives this week to discuss the situation.
Officials confirmed Australia currently holds more than 30 days of diesel reserves and that fuel cargoes continue to arrive in the country. As a precautionary measure, the Federal Government has also announced the release of up to 762 million litres of petrol and diesel from domestic reserves.
In New South Wales, the government has convened a roundtable with industry, energy officials and emergency services to monitor the situation and coordinate responses.
Premier Chris Minns urged businesses and motorists to avoid panic buying and emphasised the importance of maintaining stable fuel distribution.
“While global fuel supply challenges are beyond our control, there are practical things we can do here in New South Wales to ensure fuel is being distributed where it’s needed most, particularly in regional communities,” Chris says.
“This roundtable was about getting the right people in the room, sharing information and expertise and preparing for every contingency to support communities across New South Wales.”
Minns also warned that excessive purchasing could exacerbate supply pressures.
“I appreciate this is a stressful time for everyone, but communities need to look out for each other. It’s important that people don’t buy more fuel at the bowser than they need.”
Energy Minister Penny Sharpe acknowledged that some regional businesses and petrol stations are already experiencing supply constraints.
“While fuel continues to arrive to Australia and we have petrol availability, we acknowledge some regional businesses and petrol stations are running short,” Sharpe says.
“Increased demand and higher prices are challenging distribution supply chains but there is no need to buy more fuel than you usually would.”
Sharpe adds that the NSW Government will continue monitoring the situation and intervene if required.
“While participants today expressed a commitment to work together to resolve these issues, the NSW Government was clear we will intervene if necessary.”
Regulatory oversight has also been emphasised. Minister for Better Regulation and Fair Trading Anoulack Chanthivong says fuel retailers are expected to maintain transparent and accurate pricing.
“At times of global uncertainty, transparency and fairness matter more than ever and we expect fuel retailers to meet their legal obligations and provide accurate, up-to-date pricing information,” Chanthivong says.
Regional communities remain a particular focus for government planning. Regional NSW Minister Tara Moriarty says rural areas are often the first to feel the impacts of supply disruptions.
“Regional communities are often the first to feel the impacts when fuel supply is disrupted, which is why it was critical that the voices of farmers, regional mayors and industry were heard at today’s Roundtable,” Moriarty says.
“We will continue working with regional leaders and industry to make sure practical solutions are in place so communities across regional NSW are supported through this complex period.”
For the logistics sector, the rapid increase in diesel prices is likely to place additional pressure on freight and distribution costs, particularly for road transport operators that depend heavily on diesel-powered fleets.
.png){kind=logo}
