March 30, 2026 | 09:32 pm
TEMPO.CO, Jakarta - Given the escalating conflict in the Middle East, oil transportation activities through the Strait of Hormuz have been disrupted. As around 20% of the world’s oil supply depends on this route, the disruption has led to rising global oil prices, as well as contributing to the Australia fuel crisis.
The Sydney Morning Herald reported that the average price for diesel in major Australian cities peaked at $3.03 per liter last week, rising more than 61 cents within a fortnight. Petrol prices also reached a record high, averaging $2.38 per liter.
Australia Fuel Crisis: Government Announces 3 Key Measures to Ease Pressure
In response to the situation, Prime Minister Anthony Albanese recently announced several measures, totaling three key actions to address the crisis.
"While Australia’s fuel supply outlook remains secure in the near term, we need to be very clear as well with Australians that the longer this war goes on, the worse the impacts will be. And I and the government understand that people are really worried, but we have a plan to get through this"
Starting Wednesday, the fuel excise will be halved by 26 cents per liter, equivalent to a 50% cut, for three months. The heavy vehicle road user charge has also been reduced for the same period, “to help truckies continue their vital work for our nation.”
These measures are expected to cost the government significantly, with Treasurer Jim Chalmers estimating a total of $2.55 billion. However, the policy is projected to reduce headline inflation by about half a percentage point through the year to the June quarter of 2026.
The National Fuel Security Plan
Should the Australia fuel crisis worsen, a national fuel security plan has already been prepared and agreed upon by federal, state, and territory governments. Alongside Energy Minister Chris Bowen, Albanese outlined a four-level response system.
As The Guardian noted, the stages include: plan and prepare, keeping Australia moving, taking targeted action, and protecting critical services for Australians.
Currently, Australia is at level 2, which reflects ongoing fuel supply despite localized disruptions. At this stage, motorists are encouraged to purchase fuel only when necessary, with these measures designed as voluntary choices to reduce fuel consumption and help consumers avoid the impact of rising fuel prices.
Stage 3 would involve stronger measures to reduce fuel consumption, including voluntary lifestyle adjustments such as working from home, as well as potential government action like releasing additional oil reserves.
At level 4, the government would implement stricter actions to ensure fuel is prioritized for critical sectors, allowing essential services to operate while maintaining overall economic stability.
Current Fuel Supply and Global Oil Prices
International benchmark crude oil prices rose above $116 per barrel as of Monday, marking their highest level in nearly two weeks, according to Al Jazeera. Australia currently holds approximately 39 days of petrol supply, 30 days of diesel, and 30 days of jet fuel.
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