Prime Minister Anthony Albanese held a snap national cabinet meeting on Thursday to discuss major price shocks and shortages driven by the US-Israel war on Iran.
Former chief executive of the Australian Energy Regulator, Anthea Harris, was announced as the coordinator of the fuel supply taskforce.
"There was a good feeling of common purpose expressed during that meeting," Mr Albanese told reporters in Hobart.
"I want to assure Australians at this time that Australia is well prepared.
"Our fuel supply is currently secure. However, I want us to be over prepared."
The announcement came as Australia's consumer watchdog launched an investigation into each of the major fuel suppliers including Ampol, BP Australia and Mobil Oil over allegations of anti-competitive conduct.
It has received reports relating diesel availability to independent wholesalers and distributors servicing regional and rural communities.
"The ACCC is closely scrutinising all fuel markets during this period ... we are therefore investigating these matters urgently," Chair Gina Cass-Gottlieb said.
The prime minister said it was wrong for any corporation to profiteer off the conflict and pointed to the consumer watchdog examining any abuse of market power.
An agreement to release extra petrol and diesel to regional areas suffering critical shortages was reached between Energy Minister Chris Bowen and Australia's fuel companies on Wednesday.
Agriculture Minister Julie Collins said there was a "clear picture" of regional areas that most need fuel stockpiles to flow through, but the scale of the issue was still being worked through.
"We've got a clear picture at the moment about where we think it needs to go ... but we are ... looking and undertaking, as you would expect, due diligence," she told ABC radio.
The government was still compiling the data but had a list of the most affected regions, Ms Collins said.
State leaders are demanding faster action and a long-term plan from the federal government to deal with fuel shortages.
On top of allowing fuel companies to release a week's worth of petrol and diesel from their emergency stockpiles, the government has eased quality standards to allow more fuel into the market.
The Australian Trucking Association has called for disaster funding to be provided to transport companies which are dealing with the rising cost of diesel, and a reduction in the road user charge.
Logistics companies have warned they're under significant pressure from fuel price rises, which will likely be passed on to shoppers.
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