A fuel tsar will manage "unprecedented" supply issues caused by the Middle East conflict as the finishing touches are put on measures to address dire shortages in many regional areas.
The prime minister convened a snap virtual national cabinet meeting on Thursday to discuss major price shocks and shortages driven by the US-Israel war on Iran.
The former chief executive of the Australian Energy Regulator, Anthea Harris, was announced as the co-ordinator of a fuel-supply taskforce.
She will oversee work involving the nation's different tiers of government on fuel-security and supply-chain issues.
The co-ordinator will give regular updates to the Commonwealth, states and territories on Australia's fuel-supply outlook and be a single point of contact for planning.
State leaders who demanded faster action and a long-term plan from the federal government have welcomed the move.
Anthony Albanese said there was a "good feeling of common purpose" during their meeting.
"My government will be announcing more measures to prepare the nation for supply chain challenges over coming days and weeks," the prime minister told reporters in Hobart.
"Our fuel supply is currently secure. However, I want us to be over-prepared."
His comments came as Australia's consumer watchdog launched an investigation into the major fuel suppliers, including Ampol, BP Australia and Mobil, over allegations of anti-competitive conduct.
The Australian Competition & Consumer Commission would assess issues relating to diesel availability to independent wholesalers and distributors servicing regional and rural communities.
"The ACCC is closely scrutinising all fuel markets during this period ... we are therefore investigating these matters urgently," watchdog chair Gina Cass-Gottlieb said.
Regional fuel-buyers and retail outlets have complained of widespread shortages, leading to some petrol stations running dry.
The prime minister said it was wrong for any corporation to profiteer from the conflict.
An agreement to release extra petrol and diesel to regional areas suffering critical shortfalls was reached between Energy Minister Chris Bowen and fuel companies a day earlier.
NSW Premier Chris Minns backed the federal decision-making, adding that Australia's position at the end of supply chains in Asia made the pressure particularly intense.
"It's a near unprecedented situation to have an oil shock affecting global supplies of oil, petrol, jet fuel," he said.
Queensland Premier David Crisafulli said people had real concerns about access to affordable fuel, particularly among primary producers and in the mining industry.
"Our request on behalf of Queensland is very clear; we want two things to flow: information and fuel," he said.
Opposition energy spokesman Dan Tehan said Ms Harris needed to identify any gaps in supply and undertake an assessment of fertiliser stocks.
"The Albanese government is desperately trying to play catch-up to deal with the issues of fuel supply only a week after Chris Bowen claimed that Australia's fuel supplies were secure," he said.
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.
Logistics companies have warned they are under significant pressure from fuel price rises, which will likely be passed on to shoppers.
