Australia Fuel Crisis: Rationing, Carpooling & EV Push Under Emergency Plan
Australians could be urged to carpool and switch to electric vehicles, or face strict rationing at the pump, under a previously confidential emergency fuel plan revealed as concerns mount over dwindling national supplies. The plan, devised in 2019 by the Department of Environment and Energy and recently released under freedom of information laws, outlines measures to curb demand should the nation’s fuel reserves be critically impacted, as is currently threatened by disruptions to global oil supply.
Prime Minister Anthony Albanese has stated that oil shipments are continuing to arrive in Australia as planned, but industry figures warn of a looming fuel supply “cliff” by the end of April. Petrol prices have already reached record highs, averaging $2.38 a litre last week, fueled by ongoing conflict in the Middle East. State premiers have called for a coordinated national response to the escalating crisis.
The most drastic measure detailed in the National Liquid Fuel Emergency Response Plan involves setting a “total transaction limit” at petrol stations, effectively capping the amount of fuel individual motorists can purchase daily. This limit would be determined by the Energy Minister based on available supply. Whereas Environment Minister Murray Watt dismissed reports of a specific $40 cap as a hypothetical example from 2019, he confirmed the government is considering all options.
“We’re not considering this idea of a $40 price cap,” Watt said. “That comes from a document from the then-government, which was released in 2019, and the situation has obviously changed between 2019, and 2026.” He urged Australians to be “sensible” about their fuel consumption and consider the needs of others.
The emergency plan prioritizes “light-handed” measures initially, including a public information campaign promoting carpooling, public transport, and the adoption of electric vehicles. These measures are estimated to potentially reduce fuel consumption by 3 to 5 per cent. The plan similarly suggests encouraging corporations to reduce their fuel usage.
Education Minister Jason Clare downplayed the likelihood of rationing, stating on ABC News Breakfast that “any talk of rationing, I think it’s way too soon to be talking about that”. However, the plan outlines a formal process for declaring a national liquid fuel emergency, requiring consultation with states, territories, and industry stakeholders before a recommendation is made to the Governor-General.
Coalition frontbencher Phil Thompson, the defence industry spokesman, indicated the opposition would scrutinize legislation aimed at preventing fuel price gouging. “Punishing those that are ripping people off, that sounds like a great thing, but I also seek to hear about what that means,” he said. “What is the government going to do about fuel supply? What is it going to do to stop the prices going up?” Thompson warned the situation was approaching a “Mad Max stuff” scenario.
Several Indo-Pacific nations are already implementing measures to mitigate the impact of the oil shock. The Philippines has declared a state of national emergency, while Vietnam has announced the cancellation of numerous domestic flights to conserve jet fuel.