Australia now has 31 days' worth of diesel, a two-day improvement in reserves of the fuel vital to freight and farming, Energy Minister Chris Bowen assured on Saturday.
Jet fuel reserves have slipped by two days and one day for petrol, however.
"We have roughly as much, if not more, fuel in Australia today than we did when the bombing of Iran started," Mr Bowen told reporters in Sydney.
"None of that is to say there aren't risks and uncertainties going forward."
Roughly 173 service stations across Australia have run out of diesel, representing 2.2 per cent of all refuelling stops.
Mr Bowen's update on the fuel crisis followed Prime Minister Anthony Albanese's visit to Singapore to bolster trade ties.
More than a quarter of all fuel imported into Australia comes from Singapore and Australia provides about one-third of the city-state's LNG supply.
Mr Albanese and Singapore Prime Minister Lawrence Wong inked an agreement to continue trading large amounts of fuel and gas between the two nations.
The deal stated the countries would "make maximum efforts to meet each other's energy security needs" at a time when fuel prices have surged and many service stations face shortages as the Strait of Hormuz remains shut.
It did not include any specific guarantee Australia would be at the front of the queue in the event Singapore's refineries kept reducing output.Â
But Mr Wong shut down a question on whether Australia would be prioritised if exports had to be reduced if the energy crisis worsened.
"It won't happen," he said.
The blunt response prompted Mr Albanese to quip: "The prime minister is just as confident in private as he is in public."
Mr Bowen said the statement from the Singaporean leader was "very strong" but uncertainty continued to cloud crude oil supply chains.
Australia had also been working to diversify its fuel supply chains beyond Southeast Asia, he added, including from South American countries and Algeria.
Nationals leader Matt Canavan said a crisis response was needed to address the fuel crisis, adding Australia should not be reliant on other nations and instead look to domestic solutions.
"I hope the government's successful there but we also clearly need to do more," he told ABC TV.
"Why do we have to go cap in hand to Singapore, when we have a whole continent available to ourselves here that's got plenty of oil and gas?"
Mr Albanese said the relationship between Singapore and Australia meant they could avoid the worst of the fuel crisis.
"The best way to deal with this global crisis is indeed to work together as partners and as neighbours, and I look forward to continuing to engage with the prime minister," he said.
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