Australia's state and territory leaders will meet today for emergency fuel crisis talks to tackle the country's dwindling oil supply, after the federal government ruled out enforcing COVID-style rules.

The premiers and chief ministers are set to convene this afternoon before tomorrow's national cabinet meeting to coordinate a universal response to the petrol and diesel shortage gripping Australians.

NSW Premier Chris Minns is spearheading today's meeting ahead of a second urgent national cabinet meeting tomorrow in Canberra.

It is understood leaders are desperate to avoid a repeat of the COVID-19 pandemic, when states and territories took individual approaches to the unfolding disaster.

Fuel Supply Taskforce Coordinator Anthea Harris has been appointed to coordinate a state and territory-based response to the nationwide fuel supply.

Tomorrow's national cabinet meeting will aim to coordinate a national response to the escalating oil shortage, with leaders expected to focus on supply measures to keep Australians on the road.

PM Anthony Albanese, however, has denied there will be any COVID-style mandates on the table after urging Australians to avoid panic-buying fuel.

"I don't want things to be mandated, common sense should apply as well," Albanese said yesterday.

"This isn't toilet paper that's been piled up in some garages. It's actually fuel.

"That's not sensible on a range of levels. One, it's not doing the right thing by your fellow Australians. But importantly, as well, it can be dangerous."

The federal government will begin helping private importers bring more fuel into Australia as part of the national plan to curb the national shortage.

The new powers are set to come into effect tomrrow which will allow the government to use public funds to underwrite the purchase of fuel by the private sector.

Albanese said that the government is also in talks with local and international fuel suppliers "to help firm up and source new cargoes required to keep Australia moving".

Hundreds of petrol stations have run out of at least one type of fuel.

The price of unleaded is now tipping $2.60 in some areas, while diesel is now over $3 per litre acros the country.

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