The Morning Edition Explaining the petrol problem and whether gas is next
Mar 23, 2026
Nick Toscano, an energy reporter who analyzes fuel markets and policy, breaks down why petrol prices are spiking. He explains shrinking domestic refining, reliance on Asian imports, and how regional conflicts push oil costs up. He outlines contingency measures like stockpile releases and when shortages might actually happen.
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Australia Relies Heavily On Imported Refined Fuel
- Australia now has just two operating oil refineries left, down from eight at the turn of the century.
- Geelong (Viva Energy) and Lytton (Ampol) remain; about 90% of Australia's liquid fuel needs are now met by imports from Asia, the Middle East and the US.
Hormuz Shutdown Sent Oil Prices Skyrocketing
- The recent petrol price surge is driven mainly by a spike in crude oil prices after the Strait of Hormuz disruption.
- Crude moved from around US$70 to briefly above US$120 per barrel because roughly 20% of global oil and gas flows through that chokepoint.
Panic Buying, Not National Shortages, Driving Local Runs
- Panic buying, not an absolute supply shortfall, is causing many local stations to run dry.
- Australia still has ships arriving and a strategic stockpile covering over a month's demand, so nationwide shortage is not imminent.