Australians are being urged to work from home and reduce their driving speeds to help ease the pressure on oil demand, as the global energy landscape grapples with the ongoing conflict in the Middle East. These recommendations come from the International Energy Agency (IEA), the world’s leading authority on energy markets, as Australia’s own energy minister signals the potential for further releases from national fuel reserves amid reports of service stations running dry.
The IEA has outlined a series of measures designed to alleviate the impact of a global oil price surge. Recognising that road transport accounts for a significant portion of worldwide oil consumption – a staggering 45 per cent – the agency is encouraging individuals to embrace remote work where feasible. For those who must travel, the IEA suggests prioritising public transportation options.
Driving Down Demand: Slower Speeds, Fewer Kilometres
Beyond encouraging a shift away from private vehicles, the IEA proposes a tangible reduction in highway speed limits by 10km/h. This seemingly small adjustment, they argue, can lead to a noticeable decrease in overall fuel consumption.
The agency’s advice extends beyond road travel, advocating for a reduction in air travel and a move away from using liquefied natural gas (LNG) in domestic cooking appliances. These broader strategies aim to protect households that are particularly vulnerable to the volatility of global energy prices.
Fuel Shortages Hit Home: Service Stations Under Pressure
On the domestic front, Australia’s Federal Energy Minister, Chris Bowen, has acknowledged the fuel supply challenges. While stating that only a “very low percentage” of service stations have completely run out of fuel, he conceded that dozens in one jurisdiction have reported being out of petrol or diesel.
Data from New South Wales (NSW) illustrates the extent of the issue. Out of the state’s approximately 2,500 service stations, 42 were reported to be without petrol, and the number of outlets lacking diesel had climbed from 80 to 107.
Premier Chris Minns highlighted that these affected service stations are predominantly independent operators. Peter Khoury, a spokesperson for the NRMA, emphasised the crucial role these smaller businesses play in maintaining competitive fuel pricing.
“When the largest capital cities have price cycles, at the top of the cycles it’s always the independents that are the cheapest,” Mr Khoury stated. “Australia cannot afford to lose independents as a result of this conflict.”
Rowan Lee, CEO of the Australasian Convenience and Petroleum Marketers Association, attributed the strain on supply chains to an “unprecedented demand for fuel.” He reassured the public that any instances of a specific fuel grade being unavailable at a service station would likely be temporary, with restocking occurring relatively quickly. “We would encourage people to buy fuel in the same pattern as they normally would,” he advised.
The surge in fuel prices has also had a direct impact on motorists, with Mr Khoury noting a 15 per cent increase in roadside assistance call-outs over the past month, largely due to drivers running out of petrol.
Global Tensions and National Reserves
The current oil price spike and subsequent global supply disruptions are linked to Iran’s actions in the Strait of Hormuz, a de facto closure implemented in retaliation for perceived Israeli-US actions.
Minister Bowen reiterated that while a low percentage of service stations are experiencing shortages, it remains a “real challenge” for those in rural and regional areas struggling to secure fuel. He confirmed that there is sufficient fuel to meet demand through April. However, the possibility of releasing additional fuel from the national strategic reserve is actively being considered.
“Fuel suppliers will continue and are locked in and will continue to arrive,” Mr Bowen assured. “We will release more of the strategic fuel reserve if we have to, but only if we have to. It’s there for a rainy day.” He cautioned, however, that the situation beyond late April remains uncertain and contingent on international developments.
Political Response and Calls for Action
The federal government has appointed Anthea Harris, former boss of the Australian Energy Regulator, to oversee a newly established fuel supply task force. While Deputy Opposition Leader Jane Hume welcomed the appointment of a “fuel co-ordinator,” she expressed a desire for more decisive action.
“The fuel tsar would be entirely unnecessary if Chris Bowen was doing his job from day one,” Senator Hume commented. “We need to secure the supplies, certainly make sure that the distribution networks are working in every state.”
