Australians urged to work from home to save fuel

Recommendations to Reduce Oil Demand Amid Middle East Conflict

The International Energy Agency (IEA) has issued recommendations for Australians to consider working from home and driving at slower speeds to help reduce oil demand during the ongoing conflict in the Middle East. These measures aim to alleviate the pressure on global oil prices, which have been rising due to increased tensions in the region.

Recognizing that road transport accounts for 45% of the world’s oil demand, the agency has urged workers to stay at home where possible and use public transport if necessary. Additionally, a reduction of 10km/h in highway speed limits could significantly cut fuel consumption.

Beyond roads, the IEA also suggests reducing air travel and shifting away from the use of liquefied natural gas in cooking appliances to protect vulnerable households from the economic impact of rising energy costs.

Fuel Shortages and Supply Chain Pressures

Federal Energy Minister Chris Bowen has acknowledged that a “very low percentage” of service stations have run out of fuel, although dozens in one jurisdiction have reported having no petrol or diesel. In New South Wales, figures showed that out of the state’s roughly 2500 service stations, 42 had no petrol, and the number without diesel had risen from 80 to 107.

Premier Chris Minns noted that these service stations were mostly independent operators. NRMA spokesman Peter Khoury emphasized the importance of protecting smaller outlets, as they often provide competitive pricing against larger rivals.

“When the largest capital cities have price cycles, at the top of the cycles it’s always the independents that are the cheapest,” he said. “Australia cannot afford to lose independents as a result of this conflict.”

Unprecedented demand for fuel has placed pressure on supply chains, according to Rowan Lee, chief executive of the Australasian Convenience and Petroleum Marketers Association. He stated that if service stations are out of a grade of fuel, it is usually only for a short period until they can be restocked.

“We would encourage people to buy fuel in the same pattern as they normally would,” he added.

Mr. Khoury also highlighted that the spike in fuel prices has coincided with a 15% rise in roadside assistance call-outs in the past month due to drivers running out of petrol.

Global Oil Price Spikes and Strategic Reserves

Oil prices have surged following Iran’s de-facto closure of the Strait of Hormuz in retaliation against US-Israeli strikes. This has led to concerns about global oil supplies and the potential for further disruptions.

Mr. Bowen stated that only a very low percentage of service stations were out of fuel, despite reports of outlets running dry in some regional areas. He noted that while there is plenty of fuel available to get through April, releasing additional amounts from the national reserve is under consideration.

“Fuel suppliers will continue and are locked in and will continue to arrive,” he said. “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.”

However, beyond late April, the situation remains uncertain and dependent on how international events unfold. Mr. Bowen emphasized that the government is monitoring the situation closely.

Political Responses and Fuel Coordination

Deputy opposition leader Jane Hume expressed satisfaction with the appointment of a fuel co-ordinator to oversee supply problems but called for more action. State and federal governments appointed former Australian Energy Regulator boss Anthea Harris to lead a fuel-supply task force.

“The fuel tsar would be entirely unnecessary if Chris Bowen was doing his job from day one,” Senator Hume said. “We need to secure the supplies, certainly make sure that the distribution networks are working in every state.”