Australia has a government-prepared plan to ration fuel if shortages worsen due to global instability, though officials currently state it won’t be enacted. The plan, outlined in the Liquid Fuel Emergency Act, would cap fuel purchases at $40 per transaction for motorists. This comes as record fuel prices and panic buying have led to petrol and diesel shortages at over 500 stations across the country.
How the Rationing Would Work
Under the law, fuel pumps would automatically cut off once a $40 limit is reached. Given current national average prices of roughly $2.38 per litre, this equates to about 16.8 litres of fuel per purchase.
The government maintains that the rationing plan is a contingency measure, and that Australia has sufficient fuel security despite global pressures.
Impact on Vehicle Fuel Capacity
The $40 cap would have varying effects depending on the vehicle. For instance:
- Toyota RAV4: Filling a 55-litre tank would cost over $130. The $40 cap would allow for roughly 16.8 litres, or around 357km of driving range based on combined fuel consumption. Drivers would need about three transactions to fill the tank.
- Ford Ranger (Diesel): An 80-litre tank would cost up to $240 at current diesel prices (reaching $3.00/litre). A $40 cap would provide about 13.3 litres, or roughly 250km of driving range. Five or more transactions would be needed to fill the tank completely.
- Ford Ranger Raptor: This high-consumption vehicle would get just 146km of driving per $40 fill. It would take almost five transactions to fill its 80-litre tank at an approximate cost of $190.40.
Why This Matters
The existence of this plan highlights Australia’s vulnerability to fuel supply disruptions. The Middle East conflict and global energy market volatility make rationing a plausible, though unwanted, scenario. The government has said rationing won’t be implemented yet, but the law is in place should the situation deteriorate further.
This situation also shows how quickly rising fuel prices erode purchasing power, making the $40 cap an increasingly restrictive limit. The lack of restrictions on multiple transactions means drivers can technically work around the rationing, but it would create significant inconvenience and delays.
