SYDNEY, March 25 (Reuters) - Australia's centre-left

government on Wednesday introduced legislation in the parliament

to double penalties for fuel price gouging as global supply

disruptions due to the Iran war triggered fuel shortages in some

rural regions.

Australia last year imported 84% of its petroleum product

demand, government statistics show, leaving it exposed to global

shocks. Supply fears have stoked panic buying, doubling demand

for fuel in some areas, despite assurances from the government

that the market is well supplied.

* Treasurer Jim Chalmers said the proposed Treasury Laws

Amendment Bill 2026 would impose fines of up to A$100 million

($70 million) for false or misleading conduct and cartel

behaviour.

* Companies must not use the conflict overseas as an excuse

to raise prices, he said, urging opposition lawmakers to back

the bill.

* "We're not immune from uncertainty and volatility in the

global economy, but this action is all about protecting

consumers and holding petrol suppliers and retailers to

account," Chalmers said.

* The legislation follows an investigation by Australia's

competition regulator last week into alleged anti-competitive

conduct by major fuel suppliers, including Ampol ( CTXAF ), BP

, Mobil Oil Australia and Viva Energy ( VVEGF ),

which operates Shell and Liberty fuel stations.

* More than 100 service stations across Victoria state ran

out of petrol on Tuesday, ABC News reported, citing the state's

energy minister. In New South Wales, Australia's most populous

state, 165 stations were without diesel on Tuesday and 298

lacked at least one type of gasoline, The Sydney Morning Herald

newspaper said.

* The Labor government has said it would release petrol and

diesel from domestic reserves and temporarily loosen gasoline

and diesel quality standards to increase supply. ($1 = 1.4302

Australian dollars)