New Federal Government Campaign Encourages Fuel Conservation Amid Global Oil Crisis
A new federal government advertising campaign is urging Australians to reduce their fuel consumption during the current global oil crisis. The initiative encourages citizens to consider using their cars less and provides practical tips to improve fuel efficiency, such as “driving smoothly” and “unloading excess weight.”
This campaign follows Prime Minister Anthony Albanese’s recent trip to Singapore, which plays a significant role in Australia’s refined fuel imports. Singapore accounts for more than a quarter of Australia’s fuel imports, including over half of its petrol, 22% of jet fuel, and 15% of diesel.
The launch of this campaign indicates that the government is at least somewhat concerned about potential fuel shortages in Australia. However, it also highlights the broader challenges posed by the ongoing conflict in the Middle East and its impact on global fuel supplies.
Why the Concerns About Fuel Supply?
The campaign was launched just two weeks after the national cabinet endorsed a four-stage National Fuel Security Plan. This plan includes rationing as a final step, given the continued fluctuations in global fuel supplies due to the ongoing conflict in the Middle East.
The Strait of Hormuz is a critical factor in this situation. It was temporarily re-opened after a two-week ceasefire was agreed upon last week. However, Iran has since blocked ships from passing through the strait following Israel’s strikes in Lebanon. On Monday, US President Donald Trump threatened to block the strait via the US Navy.
Even before the ceasefire, the Australian government stated that it had secured supplies up to May and that rationing would not be necessary. However, if there is no lasting peace in the Middle East, rationing may become a necessity.
Asian Countries Responding to the Crisis
Asian economies are particularly reliant on oil and gas supplies from the Middle East. According to the US Energy Information Administration, 84% of crude oil shipped through the Strait of Hormuz in 2024 was destined for Asia. As a result, several countries have already introduced rationing or other measures:
- Myanmar uses an “odd-even” system based on license plates, allowing the purchase of fuel on alternating days
- Thailand has encouraged remote work for public servants and asked residents to limit the use of air conditioning
- Vietnam has promoted cycling and carpooling
- Sri Lanka has implemented a weekly ration system for vehicles using a QR code
- Indonesia, Southeast Asia’s largest economy, has capped daily purchases for private consumers and asked public servants to work from home once a week
- The Philippines declared a national emergency and implemented governmental conservation measures
While countries in Europe and Africa have also implemented rationing, Asian nations have been particularly affected by the crisis.
Australia’s Experience with Fuel Conservation
Australia has faced fuel rationing in previous emergencies. During World War II, when the war broke out in September 1939, Australia only had enough petrol to last three months of normal consumption. Initially, the wartime government led by Robert Menzies encouraged voluntary reductions in fuel consumption and promoted the use of vehicles powered by gas from coal.
As the war intensified, oil tankers heading to Australia turned back due to the conflict, leading to a decline in supplies. In June 1940, the cabinet aimed to reduce consumption by 50%, later reduced to 30%. Under national security regulations, civilians were issued ration coupons limiting how much fuel they could purchase. Non-essential driving was restricted, and public transport and essential industries were prioritized.
Rationing remained unpopular, contributing to Menzies’s near-defeat in the September 1940 election. His government was replaced the following year by a Labor government. Even after the war ended, petrol rationing continued because Australia had to use US dollars to purchase most of its petrol, which were in short supply throughout the British Commonwealth.
Next Serious Oil Crisis in the 1970s
Australia’s next major oil crisis came in the 1970s. In 1973, the Organisation of Arab Petroleum Exporting Countries (OAPEC) reduced oil production and suspended deliveries to some Western countries. Like many other countries, Australia experienced “stagflation”—higher unemployment and inflation—for about a decade.
However, Australia was somewhat shielded from the full impact due to the discovery of oil and natural gas in Bass Strait, achieving around 70% sufficiency in oil. Only in 1979, after a second oil price spike and a strike at the Caltex Refinery in Kurnell, New South Wales, was petrol rationing introduced through an “odd-even” number plate method.
Further Action on Fuel Supply
After the 1970s oil crisis, the Hawke government sponsored legislation to allow the Governor-General to declare a formal national liquid fuel emergency. The Liquid Fuel Emergency Act may be invoked as a last resort when a fuel shortage has national implications.
Under the act, the minister for climate change and energy can direct refineries, importers, and distributors to adjust production and manage stocks. The legislation also allows the government to implement two levels of rationing: retail and bulk.
Retail rationing involves service stations limiting how much individual motorists can buy at a time while also exempting essential users. Bulk rationing targets large-scale distributors and wholesale customers, such as mining companies and large transport fleets.
A Reprieve, for Now
Albanese’s National Fuel Security Plan mentions rationing as a final step. Triggers include shortages threatening the operation of critical infrastructure, stockpiles being dangerously depleted, and if the economy is at risk of stalling.
The wobbly ceasefire in the Middle East has granted Australians a temporary reprieve. However, rationing remains a possibility if hostilities resume.
