Federal Resources Minister Ian Macfarlane said the simulation, run in three phases, would be conducted by Emergency Management Australia.
The first phase would see ordinary consumers limited to 20 to 30 litres, based on car number plates. The second phase would see fuel delivered to major users while the third phase restricts oil to critical infrastructure only.
While Macfarlane said the Iraqi war was not expected to cause any major supply shortages, he said the US-led attack has added impetus to energy security issues.