Nathan Falvo was forced to ration the latest fuel delivery at his petrol station in Robinvale, in Victoria's far northwest, after running completely dry over the weekend.
Mr Falvo said the shortage had spread to the town's two other stations, which have also introduced a $50 sales limit.
"Basically the whole town, which is one of the fruit bowls of Australia, was out of fuel," Mr Falvo told AAP on Monday morning.
"I've been here at this business for 25 years and I've never seen this happen before. All three stations were out."
The conflict in the Middle East has caused huge disruption to fuel supply, sending unleaded petrol prices in Australia above $2.20 a litre, and diesel to more than $2.60 a litre.
It comes after Iran 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 federal government on Friday announced up to 762 million litres of petrol and diesel from companies' emergency reserves could 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.
The shortage has had a major impact on the Robinvale community, which is largely made up of farmers and primary producers who rely on vehicles and machinery to operate.
Mr Falvo added that customers had been understanding, though it's difficult in a region where many rely on petrol cars to commute.
"Some of these workers are doing over 100km round trips per day to get to and from work," he said.
"We don't have trains, trams or public transport here ... I've heard a push towards electric vehicles because of this (shortage) and it's not possible."
Several other towns including Wedderburn and Bonnie Doon also ran out of fuel over the weekend, according to Victorian Farmers Federation president Brett Hocking.
"They are definitely under pressure, and it's quite widespread throughout rural Victoria," he told AAP.
Fuel deliveries to farms have also been affected, with some farmers facing a two-week wait.
"It's a bit of a supply and demand issue, demand is definitely increasing in rural areas and on farms," Mr Hocking said.
"Melbourne service stations are also seeing unprecedented demand there as well, that's putting constraints around the availability of trucks that can deliver fuel up to rural areas."
Regional communities in NSW have also reported fuel shortages, Premier Chris Minns told reporters on Monday.
The NSW government will convene a fuel security roundtable in the coming hours, which will include representatives from transport and logistics, fuel, agriculture, local government, mining, unions and consumer protection groups.
"It's harder to restock those petrol stations (in regional areas) if they've got more than expected out of the bowsers on any given day," he said.
Energy Minister Chris Bowen has been contacted for comment.
27°C