A Sydney petrol station was swarmed by drivers after it sold fuel for less than 80¢ per litre thanks to a local setting up a 'tab'.

Long queues could be seen at Metro Petroleum in the western suburb of Blacktown on Saturday as word spread that it would only cost car owners 78¢ per litre.

A line trailed a kilometre down the road after 15 minutes, and there was a traffic jam at a nearby roundabout. Police were reportedly called to manage the crowd.

The reason for the shock price was a $10,000 tab set up by former federal Independent candidate for McMahon, Matthew Camenzuli. 

He subsidised the cost of the public's fuel using the five-figure fund which was part of a lump sum he was given from the government after he gained 4 per cent of the vote in the federal election last year.

'Normally the money goes to either the candidate or their political party and they're putting it in their pockets' he told 9News.

'I'm giving it back. It's not mine. I don't want the taxpayer's money. 

'So petrol station here on Flushcombe Road, the fuel is now 78¢ a litre and it will be 78¢ a litre until the $10,000 runs out.'

Drivers quickly packed the service station, with some waiting about 40 minutes to fill up.

'At 78¢ a litre, you'll wait. It's crazy not to,' one motorist told 9News.

Another driver said they could not remember fuel being that cheap for '20 years or longer', but added the rush had brought out bad behaviour.

'It's the rudeness of everyone else that's ruining it,' they said.

A third person, a father, added that the saving was significant for him: 'I got 10 kids in the car and one on the way, so 11 all up. Any savings we can (get) counts.'

Three hours after the tab was opened, the $10,000 was gone. 

In the last two months, long lines were seen at the bowser in both Sydney and Melbourne as conflict in the Middle East caused petrol prices to skyrocket.

The fears stemmed from concerns about the Strait of Hormuz – a narrow stretch of water between Iran, the United Arab Emirates and Oman through which 20 per cent of global crude oil typically travels. 

In March, oil prices spiked sharply above US$120 a barrel at one point.

However, Energy Minister Chris Bowen said on Saturday that Australia has more fuel now than it did when the international fuel supply crisis began.

There were 56 ships carrying fuel en route to Australia, he told reporters during an update on the supply situation.

Four billion litres of fuel were locked in and contracted for delivery in the next four weeks, Bowen said.

That included two billion litres of diesel, 577 million litres of petrol, 516 million litres of jet fuel and 813 million litres of crude oil.

Australia currently has 43 days' supply of petrol, 33 days of diesel and 28 days of jet fuel, Bowen said.

'We have more fuel in Australia today than we did when this international crisis began,' he said.

But even if the Mideast war ended now, he warned, there would still be impacts on supply chains.