Prime Minister Anthony Albanese announced parliament will on Monday consider the measures that will support private companies purchasing cargo ships of fuel as prices continue to increase due to shortages caused by the Iran War.
The measures would involve using public funds to underwrite private companies in order to buy additional shiploads of petrol or diesel for Australia.
"Put simply, there is a risk of a private purchase of shiploads of fuel at higher prices, because there is so much uncertainty with the war in the Middle East," Mr Albanese told reporters on Saturday.
"This is about risk mitigation for (private companies) to add to supply and it will give suppliers the confidence to secure additional and discretionary cargoes used to service uncontracted demand, including for regional and independent fuel suppliers."
Six out of 81 fuel cargo ships scheduled to arrive in Australia in April had cancelled their arrivals but these had been replaced by others.
Mr Albanese said the government was taking steps to be "over prepared" in the face of uncertainty about the war.
"We're working to get more fuel to Australia, but we're also working on distribution to get it to where it needs to go, which is why we've ensured that the fuel reserves that have been released are going to regional areas, to areas that are most in need," Mr Albanese said.
Australia's consumer watchdog on Friday reported average diesel prices in the five largest cities hit 303.5 cents per litre, rising 27.8 cents in a week, due to fuel shortages caused by the Iran War.
Unleaded petrol prices hit 252.2 cents per litre.
The trend was even more pronounced in regional Australia, where diesel prices averaged 307.6 cents per litre, a 28.6 cent weekly jump.
The opposition has proposed halving the 52.6c a litre excise, as well as the heavy vehicle road user charge, to provide immediate relief for households.
"We call on the government to get serious about taking action and fix the situation we're facing right now," Opposition Leader Angus Taylor said.
The National Road Transport Association has called for three "urgent" actions - emergency financial support payments for affected transport businesses, a six-month moratorium on heavy vehicle equipment loan repayments, and a suspension of the road user charge.
"A consistent, nationwide approach is critical to ensure operators aren't facing a patchwork of measures and can access the same level of support regardless of where they operate," chief executive Warren Clark said.
"These are practical, short-term measures that would deliver immediate cashflow relief and help keep trucks on the road."
Mr Albanese will meet state and territory leaders on Monday to co-ordinate a national cabinet response.
15°C