Full Story Can Australia avoid the worst of the oil shock?
Mar 24, 2026
Tom McIlroy, political editor at Guardian Australia, explains policy choices and government levers. Jonathan Barrett, business editor at Guardian Australia, breaks down market and economic impacts. They discuss Australia’s thin fuel buffer, real versus panic-driven shortages, inflationary ripple effects, political and diplomatic responses, and whether the shock could speed up EVs and renewable transition.
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Supply Disruptions Are Already Happening
- The current event is an oil shock driven by Middle East disruptions and blocked shipments through the Strait of Hormuz.
- Tom McIlroy notes several inbound fuel tankers were turned away and hundreds of local service stations are facing localized outages.
Panic Buying Doubled Local Demand
- Panic buying amplified shortages as demand spiked by about 100% day‑to‑day in places.
- Tom McIlroy says government still blames unnecessary purchasing even though concrete delivery gaps emerged recently.
Fuel Prices Feed Persistent Inflation
- Prolonged high fuel prices embed through the economy, raising inflation and persistent higher costs.
- Jonathan Barrett warns fuel affects freight, fertiliser, diesel for farms and jet fuel, so inflationary effects stick long term.