A Victorian service station has run out of diesel this afternoon as people rush to fill up ahead of tonight's fuel excise increase.
Cars and trucks queued up at the Apco service station in Mildura, Victoria's far north-west, before diesel pumps ran dry at lunchtime.
The reinstatement of the full federal government fuel excise has caused panic buying.
The Morrison government's final budget in March, the fuel excise reduction, will end at midnight.
The tax on fuel will be increased by 25.3 cents per liter, according to the competition regulator, the ACCC.
Fuel stations in Queensland are dealing with long line-ups as people rush to fill up their tanks.
Cairns petrol station owner Michael Salerno said people had been filling up 1,000 litre containers and 200 litre drums.
He said we've been busy the last few days.
Fuel attendant Ellie Laird of Apco Mildura said it was disappointing to have to turn motorists away.
She said we do get a little bit of attention from customers but they're pretty understanding that we just have to wait for a truck from Melbourne or Adelaide.
It's been chaotic and it will be even more chaotic after the truck comes tonight. Ms Laird said the logistics around fuel delivery were more challenging in remote towns.
Nine times out of 10 we don't know where it's coming from, so we just have to wait.
The price is rising and everyone is scared of running out of diesel. In regional Queensland, experts believe that the return of the excise will result in unleaded petrol costing around $2 a liter.
Today, drivers in Townsville rushed to a retailer selling unleaded for 153.9 cents a litre, causing a line-up at the 24 pump station.
By lunchtime, a north Queensland petrol station reported selling more than 5,000 litres of fuel, exceeding the usual daily average of 3,000 litres.
In Mildura, Melbourne resident Ashley Jasper said he needed fuel to drive back to Melbourne.
He said we came in here because they were advertising $1.86 or $1.87 and of course the pumps are dry.
If they're not already out as well, there's a line at the next petrol station. Mr Jasper said if they were unable to refuel in Mildura this afternoon, they would have to make alternative plans.
The full price hike would not be felt at the bowser for another five to seven days, according to Australasian Convenience and Petroleum Marketers Association chief executive Mark McKenzie.
The excise affects the wholesale price, so it applies only to fuel delivered into the service station after midnight, he said.
McKenzie said that it would be a slower transition for regional and rural retailers, who could hold onto their pre-excise prices for longer because they tend to sell fuel at a slower pace than in capital cities.
He said retailers were trying to get their hands on more fuel before the wholesale price went up.
There's been a mad rush as transport companies have been petitioned by retailers to get a last minute delivery in, he said.
If you're a shrewd operator, what you're doing is trying to get as much of that low excise fuel in your tanks before midnight tonight. He said that getting more stock would help retailers stay competitive for longer.
This is the time to use your fuel price apps because there's going to be a lot of variability.