Australians face more cost-of-living pain as farmers struggle to cope with war-induced fuel supply and price struggles.
Service stations in the regional Western Australian towns of Kulin and Corrigin have placed temporary restrictions on fuel because of uncertain deliveries and panic buying.
Shipping has been disrupted through the Strait of Hormuz, one of the world's most important oil corridors, by the escalating war in the Middle East.
The situation was creating headaches for farmers on the cusp of harvesting summer crops and planting for winter, National Farmers’ Federation president Hamish McIntyre said.
"The conflict in the Middle East reiterates how Australian farmers are at the mercy of geopolitical tensions because of their heavy reliance on imported inputs and export markets," he said.
"Livestock exports have been disrupted and we expect farmers will soon face higher fuel and fertiliser prices.
"Without fuel and fertiliser, farmers simply can’t get food and fibre to consumers."
If constraints on fuel and fertiliser continued, Mr McIntyre warned costs on perishable goods such as dairy, fruit and vegetables could rise by 40 to 50 per cent.
"It's a double effect - it's cost of delivery, plus cost to farmers that will add up to a greater cost for consumers in our supermarkets," he said.
Global supply chain challenges were yet to directly flow through to independent supermarkets and grocers, MGA Independent Businesses Australia chief executive Martin Stirling said.
But Mr Stirling acknowledged smaller retailers would have no choice but to pass on any transportation or wholesale good cost increases.
"Passing on price increases is a last resort," Mr Stirling told AAP.
"They absorb what they can but they're under incredible cost pressures at the moment."
Energy Minister Chris Bowen, Agriculture Minister Julie Collins and Industry Minister Tim Ayres were scheduled to meet with officials from the National Farmers Federation, oil companies and the trucking industry on Tuesday.
Australia had 32 days worth of diesel as of Tuesday morning, Mr Bowen confirmed.
He acknowledged there had been a "massive spike" in demand, particularly in regional areas, but insisted domestic fuel stocks were as high when the crisis began.
"We have enough diesel in Australia for our needs for the foreseeable future and there is absolutely no need for panic," Mr Bowen told reporters.
Australia imports most of its liquid fuel including petrol, diesel and aviation fuel from refineries in Singapore, South Korea and Japan.
Refineries were meeting their contracted obligations but not able to facilitate extra orders because of demand-side pressure, Mr Bowen said. He said the government wouldn't hesitate to use the minimum stock obligation if the Middle East conflict threatened domestic fuel security.
Opposition energy spokesman Dan Tehan said the Australian economy relied on diesel and accused Mr Bowen of "sitting on his hands".
"If he's right ... then what is he doing to make sure it's distributed evenly across the country so that we don't have certain areas and certain industries and key industries that are missing out," he said.
Airlines for Australia & New Zealand chair Graeme Samuel said increasing global oil and refinery costs might flow through to airfare ticket prices.
But he stressed carriers were partially insulated through jet fuel contracts and there was no issue on supply.
"There is no imminent shortage of jet fuel," the former Australian Competition and Consumer Commission chair said.
Average prices of unleaded petrol have soared past $2 a litre in every capital city except Perth, with the consumer watchdog warning retailers against giving false or misleading reasons for price increases.
Consumer confidence has plummeted to its weakest level since July 2023, according to a weekly ANZ-Roy Morgan survey.
ANZ economist Madeline Dunk linked the result to rising geopolitical uncertainty and crude oil prices boosting inflation expectations.
