Cutting fuel excise is a sugar hit – we need a plan to slash dependence on imports |
As fuel prices spike, many Australians are understandably anxious. Photos of empty bowsers, long queues, and high prices create the impression of a system under strain.
What we are seeing isn’t a collapse of Australia’s fuel supply chain. Shipments are still arriving and most deliveries continue as planned. While some cargoes have been disrupted, governments and industry have actively secured alternative supplies. What this crisis shows is the lack of a clear, long-term strategy to reduce dependence on fuel shipped from conflict zones thousands of kilometres away.
Because Australia is so reliant on trucks running on imported fuel, rising diesel costs are now flowing through the economy and pushing up the cost of freight, food and everyday goods.
The federal government has moved to underwrite fuel imports, relax fuel standards and tap reserves. The government has also flagged the possible need to ration fuel if supplies keep shrinking in its new fuel security plan.
These are sensible responses to a disruption more complex and potentially longer-lasting than first thought. But they are not a long-term plan to end reliance on importing fuel in a very uncertain world.
Australia’s plans for the future of transport include a national electric vehicle strategy and the New Vehicle Efficiency Standard.
These steps are necessary. The problem is, they tend to exist in silos. There’s no clear roadmap aimed at a practical outcome: reducing dependence on imported fuels and strengthening our long-term energy security as part of the transition to net........