Recent studies show that Australia’s liquid fuel reserves would only last for 68 days in case of a disruption, mainly due to the country’s increased dependence on imported transport fuels.
That’s despite International Energy Agency (IEA) guidelines requiring us to hold 90 net import days’ worth.
According to a report by the Australia Institute, the Australian Government includes about 21 days’ worth of fuel in transit to or located on ships docked in foreign harbors, with the majority of these ships being foreign-owned.
‘There is no guarantee that this fuel would reach Australia in the event of a crisis.’
The report claims that if Australia needed to access US-based fuel reserves, it would take more than three weeks to get here.Â
The Australia Institute has issued a warning about the country’s limited 68-day supply of liquid fuel in the event of a crisis disrupting the fuel supply.
The report warns that Australia needs to reduce reliance on oil and encourage the uptake of electric cars
‘In the event of a global emergency, there is no guarantee the oil that Australia has been promised access to in the US would be practically accessible from across the Pacific or otherwise,’ said researchers. Â
The Australia Institute’s climate and energy program director, Richie Merzian, said Australia’s continuing dependence on liquid fuels represented a major energy security risk. Â
‘Australia has a national security problem when it comes to transport fuels. It’s worrying that Australia is almost entirely reliant on foreign oil for fuel consumption, leaving it ill-prepared to deal with international disruptions,’ Merzian said.
‘It should concern every Australian that 91 per cent of Australia’s fuel – like petrol and diesel – is linked to imports and most of that is used for transportation.
‘The federal government failed to deliver its final Liquid Fuel Security Review in 2019, and since then Australia has become more, not less fuel insecure,’ Merzian added.
The Australia Institute’s report recommends that the federal government should be looking to introduce measures that reduce the country’s reliance on fossil fuel supplies, including supporting the uptake of electric vehicles.Â
‘The Australian Government has no plan to electrify Australia’s vehicle fleet and does not provide direct financial incentives to reduce the cost of EV purchase,’ the report says.
‘Policies such as rebates or grants, tax breaks, and conversion bonuses for trading in old diesel or petrol vehicles are among the incentives that should be considered, alongside introducing fuel efficiency standards and incentivising transition for heavy diesel vehicles.’Â
‘Australia Institute research shows that the majority of Australians support policies to support EV uptake. Demand-side solutions to liquid fuel security, such as moving to EVs, are needed to significantly reduce our vulnerability.
‘Australia’s energy security policy should consider demand for oil and seek to reduce demand through the uptake of electric vehicles,’ it concludes.
Merzian says that the only ‘long-term’ solution to avoid rising petrol prices is to encourage the switch to electric vehicles.
‘High petrol prices are already hurting Australians. The only long-term solution is getting off oil. This involves increasing fuel efficiency and transitioning to electric vehicle,’ Merzian said.
‘Australia is an international laggard when it comes to fuel efficiency. Weak fuel standards and an absence of a national electric vehicle policy leave Australia among the least fuel-efficient fleets in the OECD, and far behind the rest of the world in electric vehicle uptake.’
