Iran has closed the strait of Hormuz, one of the world's most important oil corridors, after the country was attacked by US and Israeli forces.
The conflict in the Middle East has spiked oil prices, sending unleaded petrol prices in Australia above $2.20 a litre, and diesel to more than $2.60 a litre.
Fuel transport companies support a proposal by One Nation MP Barnaby Joyce to reserve fuel for farmers and regional areas as the Iran war drags on.
Mr Joyce argues this would ensure supermarket shelves remained stocked and other key industries could continue operating.
Fuel should have already been reserved for the regions, said Westlink Petroleum managing director Danny Kreutzer, whose Queensland-based company transports fuel for 500 businesses.
But NRMA spokesman Peter Khoury said the organisation did not support the proposal.
"It will have an economic and social connection impact and we believe it's unnecessary," he said.
"Fuel supplies have continued throughout this war and urge Australians not to panic buy and stockpile, particularly diesel."
Mr Joyce said Australia should be part of a global effort to end Iran's blockade, as US President Donald Trump calls on countries to step up.
"If you are part of a beneficiary of it being resolved, you got to do something for it," he told ABC's Insiders.
Mr Khoury said there were reports in some locations of people buying four times the amount of fuel usually sold.
"When Australians are stockpiling fuel in jerry cans in homes, that behaviour will inevitably lead to shortages," he said.
"If that behaviour stops, it will go a long way to stabilising the situation."
The federal government on Friday announced up to 762 million litres of petrol and diesel from the emergency reserves of companies would be released to address shortfalls.
Energy Minister Chris Bowen has repeatedly provided assurances Australia has enough fuel and said shortages were down to people stockpiling.
He has also rejected calls to bring in fuel rationing in metropolitan areas.
Treasurer Jim Chalmers said the nation had plenty of fuel.
"We've got big stockpiles of fuel, whether it's petrol or diesel or jet fuel, and we work around the clock to make sure that Australia doesn't run out, we're certainly not expecting that we will," he told Sky News on Sunday.
Labor has also relaxed its fuel quality requirements, meaning higher sulfur petrol usually reserved for export can be sold in Australia in a bid to tackle increased demand.
Nationals Leader Matt Canavan said despite there being enough volume of fuel in Australia, it was a "small mercy" for farmers and businesses.
"When they go to the petrol station or they call their contractor and there's no fuel available, they've got a supply crisis," he told Sky News.
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