Bowen says percentage of fuel stations out of fuel is in 'low single digits'

The Department of Prime Minister and Cabinet has asked Treasury to model "new levy options" as a means of taxing windfall profits of gas companies, as the government tries to shield Australians from the economic impacts of the conflict in the Middle East.

Fuel prices have risen sharply around the world since Iran began its effective blockade of the Strait of Hormuz - a key shipping route for about a fifth of the world's oil.

The federal government yesterday launched a task force to manage fuel supply, while the ACCC announced a probe into price gouging.

• GUEST: Chris Bowen, Minister for Climate Change and Energy
• PRODUCER: Isadora Bogle