Australia will be overprepared should conflict in the Middle East continue to impact fuel supplies, Anthony Albanese has promised.
The prime minister's assurance is backed by preparations to enact new powers designed to help petrol and diesel supplies flow into the country.
With ongoing uncertainty about the Iran War, which has caused prices to skyrocket and supplies to dwindle amid a blockaded Strait of Hormuz, the government proposes using public funds to underwrite private companies to buy additional petrol or diesel.
Federal parliament will on Monday consider the measures to amend legislation granting it the power to do so.
"This support from the government will not be business as usual," Mr Albanese told reporters on Saturday.
"It has to be additional supplies that are available on the international market and it literally will be underwriting the purchase of shiploads of fuel to get here to Australia.
"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Six out of 81 fuel cargo ships scheduled to arrive in Australia in April cancelled their arrivals but these have been replaced by others.
Mr Albanese said the government was taking steps to be "overprepared" in the face of uncertainty about the war.
Australians did not need to stockpile fuel and people should use common sense, he said, noting reports of people filling up multiple jerry cans at petrol stations.
"That's not the Australian way, people need to take what they need and no more," he said.
"We are encouraging common sense when it comes to this (and) whether it be individuals or businesses, take what you need.
"(Bunnings has) run out of jerry cans. That's not sensible. People need to act responsibly at this time."
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.
The trend was even more pronounced in regional Australia, where diesel prices averaged 307.6 cents per litre, a 28.6 cent weekly jump.
Unleaded petrol prices hit 252.2 cents per litre.
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, but the government has ruled this out.
Energy Minister Chris Bowen said Australia has 39 days of petrol, 30 days of diesel and 30 days of jet fuel in stocks.
The government was working within a "complicated supply chain" and the proposed powers would allow companies to improve supplies, he said.
"While the ships continue to come to Australia ... the fact of the matter is cargo internationally is available, but is getting increasingly expensive and increasingly risky in a volatile environment," he said.
"At the moment, companies are making those commercial decisions, are buying cargoes, but at elevated prices.
"If those prices continue to move around, there'll be cargoes that Australia misses out on unless the government acts in close partnership (with them).''
Mr Albanese will meet state and territory leaders on Monday to co-ordinate a national cabinet response to the crisis.
Australia's peak motoring body welcomed the proposed measures which would help reduce the price of fuel impacting households and businesses.
"Improving Australia's fuel security will do much to settle people's nerves and reduce the unprecedented demand," Australian Automobile Association managing director Michael Bradley said.
"Improving certainty of supply will also help ease prices and allow fuel distributors to meet the needs of retailers currently facing supply shortages, especially areas in regional Australia."
