Australia imports more than 90% of its refined fuel, a dependence RMIT's Vinh Thai said the Middle East conflict has again exposed despite government strategic oil reserves.
Seventy-two percent of Australian businesses have already been hurt by fuel prices or availability, which Thai said shows fuel shocks are a whole-economy supply chain risk, not just a transport problem.
Petrochemical supply chains are also being hit because crude oil and LNG underpin production of medicines, computer chips and many other manufactured goods.
Thai said the answer is diversification—broadening fuel sourcing and building more domestic capability—to strengthen Australia's long-term energy security and supply chain resilience.
With Australia holding just a 30-day fuel supply, could a prolonged Middle East conflict bring the entire nation's economy to a sudden halt?
Could this severe imported fuel shortage finally force Australia to abandon foreign oil and rapidly accelerate its transition to complete energy independence?
How will an overseas shipping crisis silently drive up the cost of your everyday groceries and essential medicines in the coming months?