Oil prices have soared and global supplies have been cut after Iran's de-facto closure of the Strait of Hormuz in retaliation against US-Israeli strikes.
Rising demand has also placed increasing pressure on fuel supply chains.
Australia's consumer watchdog has granted an urgent interim authorisation to members of the Australian Institute of Petroleum allowing companies to discuss, exchange information about, and co-ordinate on the supply of fuel without risking a breach of competition laws.
But fuel suppliers are not allowed to share information about or reach an agreement on price.
Allowing major companies to co-ordinate raises a risk of harm to competition which is why the authorisation has strict conditions, Australian Competition and Consumer Commission chair Gina Cass-Gottlieb said.
"We recognise how critical it is that industry is able to quickly and efficiently co-ordinate and respond to the supply chain disruptions we are experiencing," she said.
Any company that broke the rules would be penalised, Treasurer Jim Chalmers warned on Saturday.
"It's really important the big players in the fuel markets don't treat this as a chance to disadvantage the independents who play a vital role including in regional Australia," he said.
"The government is working with industry and regulators to ensure Australians get a fair go at the pump and in the supply chain and anyone breaking the rules must have the book thrown at them."
The watchdog has also imposed conditions to the authorisation that aim to maintain independent fuel distribution.
"We note that independent suppliers are part of their local, regional communities and have established relationships in their areas," Ms Cass-Gottlieb said.
"They are a crucial part of supply chains in this market and need to be part of the solution to the fuel supply issues, including by receiving adequate allocations from the major suppliers."
27°C