An agreement to release extra petrol and diesel to regional areas suffering critical shortages was reached between Energy Minister Chris Bowen and Australia's fuel companies on Wednesday, AAP has learned.
The deal was discussed at a roundtable convened by Transport Minister Catherine King, two sources familiar with the meeting said, but it is yet to be formally announced by the government.
It comes ahead of a national cabinet meeting on Thursday between the prime minister and state premiers to discuss major price shocks and shortages driven by the war between the US, Israel and Iran.
State leaders are demanding faster action on the crisis and a long-term plan from the Commonwealth to deal with fuel shortages, if the conflict isn't resolved quickly.
National cabinet plans to appoint a fuel tsar to help lead the nation's response, Prime Minister Anthony Albanese revealed on Wednesday.
"I'll be asking state premiers and chief ministers to appoint someone, a point person, so that the Commonwealth can collaborate in a way to make sure we deal with the challenges which are there," he told reporters in Burnie, Tasmania.
NSW Premier Chris Minns said the gathering was an opportunity to deal with the challenges around fuel supply, particularly the availability of diesel.
"We're keen to see a national plan that sets out a clear escalation pathway, including what further actions may be taken if the conflict continues and conditions worsen," he said in a statement.
On top of allowing fuel companies to release a week's worth of petrol and diesel from their emergency stockpiles, the government has eased quality standards to allow more fuel into the market.
But it has kept its cards close to its chest when asked about further potential measures.
Treasurer Jim Chalmers flagged more announcements in the coming days, but provided little detail.
"We are preparing for the risk of more prolonged disruption, including through work with international partners, to help insulate more fuel-exposed industries like farming, transport and mining," he told ABC TV on Wednesday.
Western Australian Premier Roger Cook said he'd use the meeting to raise concerns about the length of time taken to release fuel from the nation's strategic reserves.
"The last thing we need is some bureaucrat in Canberra sitting on their hands, taking their time to consider what is a national challenge," he told reporters on Wednesday.
The Australian Trucking Association has called for disaster funding to be provided to transport companies which are dealing with the rising cost of diesel, and a reduction in the road user charge.
Logistics companies have warned they're under significant pressure from fuel price rises, which will likely be passed on to shoppers.
