Australians have been warned diesel will likely soon hit $4 a litre, while the energy minister has thown his support behind increased work-from-home arrangements to save on fuel.

Petrol prices continue to soar across the country and petrol stations keep running out of fuel, with 166 stations running out across Australia today.

National Roads and Motorists’ Association (NRMA) spokesperson Peter Khoury said some stations were already charging more than $3 a litre for diesel.

Melbourne's Westgate freeway at dusk, people driving homeMelbourne’s Westgate freeway at dusk, people driving home (Getty)

He said it is a matter of when – and not if – diesel rises to cost $4 per litre.

“It is not only possible, it is probable,” he said at a press conference today.

“There is nothing holding back these price rises.”

Khoury also warned that the price of diesel would lead to higher costs for households.

“Our economy runs on diesel. When the price of diesel goes up, so too does everything else,” he said. 

Motorists are being urged to make changes to cope with the global fuel crisis.

Khoury advised them to opt for E10 over unleaded at the bowser as it is more locally sourced.

“If you can take E10 in your vehicle, we encourage you to do so,” he said.

“Ten per cent of every litre of E10 is ethanol that’s produced here in Australia, and not oil or petrol imported from overseas, and we have unfortunately seen yet again, just how volatile the prices of oil and fuel are.

“All it takes is for the Middle East to sneeze and the rest of the world catches a cold.”

Energy Minister Chris Bowen also suggested working from home where possible, rather than driving to work.

“I think that’s a sensible thing to do in any environment, really,” he said on ABC Insiders yesterday.

“Work from home has become an important part of Australian working life.”

His comments came after a report from the International Energy Agency (IEA) last week that suggested countries around the world should look at implementing and supporting work-from-home measures more widely.

However, Bowen conceded this would not be an appropriate option for everyone, and highlighted the report was not tailor-made for Australia.

“There are other people for whom it’s not an option, and I think people would already be looking at their options to minimise their fuel use at the moment, Bowen said.

“For other people, that’s a lot harder.

“I don’t think a one-size-fits-all approach is necessary and that IEA report is a smorgasbord of options for all countries around the world to look at in terms of their own personal circumstances.”

Bowen’s comments have been criticised by deputy opposition leader Jane Hume, who claims he is deflecting from failing to secure Australia’s fuel supply.

Minister for Climate Change and Energy Chris Bowen during a press conference  at Parliament House in Canberra on Tuesday 17 March 2026. He has now suggested more Aussies should work from home during the current fuel crisis.Chris Bowen said it would be “sensible” for some Australians to look to work from home more as the fuel crisis continues. (Alex Ellinghausen)

This is despite Bowen saying only six of Australia’s 81 oil shipments have been cancelled since the start of the conflict, and that the country has over a month’s worth of fuel supply in both petrol and diesel.

“Chris Bowen is saying, ‘it’s OK, everyone can work from home, [but] it doesn’t work that way,” Hume said on Today.

“That isn’t going to be enough to solve the supply chain crisis.”

Bowen’s comments were also met with scepticism by NSW Premier Chris Minns, who claimed the impact on fuel prices and supply would be “negligible”, at least in his state.

“When it comes to the NSW public service, our advice is that it wouldn’t make much of a difference in terms of demand, mainly because 85 per cent of our public servants work at the coalface,” he said.

“They’re not working from home. It’s not possible. Most of our employees are nurses, paramedics, police officers and firefighters.

“We just can’t issue that order.”

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.