The Albanese government will underwrite fuel suppliers to help bring “shiploads of fuel” to Australia to alleviate supply problems.

The move requires legislation; therefore, emergency laws will be introduced to federal parliament on Monday.

The government will not pay for the fuel but rather use public funds as insurance for companies having to buy supplies as prices skyrocket.

Ongoing uncertainty about the Iran War, which has driven up prices and dwindled supplies amid a blockaded Strait of Hormuz, has caused the government to propose the special powers.

Australia currently has 39 days of petrol, 30 days of diesel and 30 days of jet fuel in stocks.

But drivers have again been urged to use common sense at the fuel pump, with panic buying causing supply shortages.

Prime Minister Anthony Albanese warned people not to stockpile fuel for themselves and called on individuals and businesses to use common sense.

“People need to take what they need and no more,” he said on Saturday.

“I don’t want things to be mandated, but common sense should apply as well.

He said: “This isn’t toilet paper that’s being piled up in some garages.

“It’s actually fuel, and that’s not sensible on a range of levels.”

Albanese said Australia’s fuel supplies were stable and would remain so for the coming weeks.

He said the emergency powers would help the nation to be “overprepared” for ongoing conflict.

“This isn’t about dealing with something that will happen next week; this is prudent planning, this is about being overprepared,” he said.

“It’s a really practical measure so that if there’s a cargo ship out there available from a nation like Korea that is being bid upon, then the private sector can do that with the confidence that comes from government support in order to secure that additional supply.”

In Victoria, the state government will make public transport free for the next month to help people feeling the pinch when filling up their cars.

Passengers will not have to touch-on their myki travel card and all public transport gates will be open from Tuesday, March 31.

Trains, trams and buses are expected to get busier but the government says thousands of extra services have been added to the network to meet demand.

“This is a temporary measure to help with the cost of living; it will take pressure off the pump and help you save,” Premier Jacinta Allan said.

“This won’t solve every problem but it’s an immediate step to help Victorians right now while we keep working on new solutions to make Victoria more affordable.”

-with AAP