Australians Warned of Permanent Fuel Price Hikes to Fund New Tankers
Synopsis
RACQ expert Ian Jeffreys has cautioned that Australia’s plan to purchase its own fuel tankers may lead to long-term high petrol prices. While owning a national fleet would improve energy security during the Middle East blockade, the high cost of local labor and maintenance would likely be passed on to consumers. Australia currently relies on foreign vessels for 90% of its fuel. This article explores the trade-off between supply safety and everyday costs, suggesting that land-based storage might be a more affordable solution for the nation.
An RACQ expert has cautioned that if Australia were to purchase its own fuel tankers, it might not necessarily reduce pump prices. And although that would make our supply safer, the high operating costs of these vessels could keep fuel prices from falling in the long term.
Key Highlights
- Ian Jeffreys warns low-cost petrol won’t be coming with new tankers to Australia.
- Owning vessels makes supply more secure but significantly increases operating costs.
- Australia relies on foreign vessels for nearly all its diesel.
- The Middle East blockade remains the primary driver of high prices.
- Experts diverge from just buying ships and instead focus on using less fuel.
The Hidden Cost of Fuel National Security
Australia could not just “buy its way” out of the fuel crisis by buying tankers. RACQ spokesman Ian Jeffreys said increased reliance on ships, while less vulnerable to foreign companies’ decisions, would come at an enormous price. Operating ships in Australia has a higher cost base because of local wages and safety regulations. Drivers would therefore be loaded with those additional costs on top of the high cost of petrol even if more ships are sailing up our coast.
Why Australia Doesn’t Have a Handle on Prices
A major part of the problem is that Australia has comparatively little stored backup fuel at home. Most of our petrol and diesel is now transported by ships across the ocean. Even if the government buys its own tankers, it still has to find places to buy oil, which is very expensive today, mainly because of the blockade in the Middle East.
Moreover, the construction or purchase of such tankers takes years, not weeks. That means a new fleet wouldn’t directly assist families who are now paying high costs until 2026. For now, the priority is figuring out quick fixes to maintain a steady flow of goods across the country without raising the long-term cost of driving.
More Effective Ways to Secure Our Fuel Supply
Some experts say that rather than purchasing ships, expand storage tanks. This would enable Australia to purchase fuel at a lower price and store it safely for a rainy day. Additionally, space for fuel would buy the nation more breathing room while global wars erupt.
FAQs
- How does buying tankers make fuel expensive?
Because it is far more expensive to operate Australian vessels than to charter foreign ones.
- Will this prevent fuel prices from rising?
Probably not. The expert says it might make us safer from running out, but no one should expect the price to drop.
- How much fuel does Australia have remaining?
We generally only have, at any moment in time, 20 to 30 days of avgas stored in the country.
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