Understanding the National Liquid Fuel Emergency Response Plan
A 2019 document, made public through freedom of information laws, provides insight into potential measures the Australian government might take if fuel supply becomes unstable. This document outlines a series of “light handed” strategies aimed at reducing fuel demand without imposing strict restrictions.
The plan suggests that encouraging more economical driving, carpooling, and using public transport could be among the first steps taken by the government. These measures are part of the broader National Liquid Fuel Emergency Response Plan, which was released in late 2024. According to the document, these initial actions, combined with efforts to encourage businesses to reduce their fuel consumption, could lower overall fuel demand by approximately 2.6 to 5.1 per cent.
Despite this, the government has not yet advised Australians to adopt specific measures to cut down on fuel use. The current stance is that there is no significant impact on fuel supply in Australia, with shortages at some stations attributed to increased demand and logistical challenges.
The Role of the Emergency Plan
The National Liquid Fuel Emergency Response Plan serves as a guide rather than an official policy. It has been in place since 2006 under various governments. However, it has been noted that the plan does not account for modern practices such as working from home, which was not a common scenario when the document was created.

Minister for Energy and Climate Change, Christ Bowen, acknowledged that the plan is somewhat outdated. He emphasized that while it provides a useful framework, it is not a binding policy. Bowen explained that the plan outlines how the government would initially encourage reduced fuel use through public campaigns, but it does not address contemporary issues like remote work.
Addressing Misinformation
Recent reports have incorrectly suggested that the Federal Government would soon impose limits on fuel purchases, with some sources citing the Liquid Fuel Emergency Plan as the basis for these claims. In the document, a $40 limit is mentioned as an example of how a total transaction value-based system might operate if rationing were introduced.

Bowen has clarified that if rationing were necessary, it would not be implemented nationwide. Instead, each state would have the authority to set its own limits. He expressed his belief that national rationing would not be the preferred approach, stating that he would not support such a method.
“Now, [The Liquid Fuel Emergency Plan’s] got a particular thing in there about the federal rationing. I wouldn’t do it that way. I just wouldn’t do it that way,” Bowen said.
Preparing for Potential Scenarios
Bowen highlighted that the discussion around rationing only arises if fuel supply becomes critically constrained. He pointed out that while the current situation involves high demand, it is not yet at the level requiring rationing. However, he acknowledged that the ongoing global energy crisis necessitates careful contingency planning.

He added that in the worst-case scenario, where oil supply to Asian refineries is significantly limited, the availability of petrol and diesel in Australia could become a concern. In such a case, governments at both state and federal levels would likely initiate voluntary public communication campaigns and explore all available options to manage the situation.
“We wouldn’t do that with what we’re dealing with at the moment, demand. But in the worst-case scenario, this war rolls on for months and months and months and the supply of oil to the Asian refineries is really constrained. And therefore, the supply of petrol and diesel to Australia is really constrained.”
Conclusion
While the National Liquid Fuel Emergency Response Plan offers a framework for potential future actions, it is not currently being used as a policy tool. The government continues to monitor the situation and remains committed to ensuring fuel supply stability. As the energy crisis evolves, it is essential for governments to remain prepared and adaptable.

For those interested in reading the full National Liquid Fuel Emergency Response Plan documents, they are available through freedom of information laws.





