With petrol prices tipped to reach $2.50 across the country in the wake of the conflict, Swinburne University urban mobility expert Hussein Dia says this could lead to a renewed interest in EVs as Aussies look for alternate energy sources.
鈥淧etrol in some Australian cities could hit $2.50-a-litre according to some economists. As global instability worsens, other experts warn price spikes are increasingly likely,鈥 Professor Dia says.
鈥淲hat would happen next? There is a precedent: the oil shocks of the 1970s, when oil prices quadrupled.
鈥淭he shock drove rapid change, from more efficient cars to sudden interest in alternative energy sources. This time, motorists would likely switch to electric vehicles.鈥
Professor Dia specialises in 鈥渇uture urban mobility鈥, and says strangled global oil supply leaves Australia in the lurch.
鈥淚f the flow of oil stopped, we would have about 50 days鈥 worth in storage before we ran out,鈥 he says.
鈥淭he best available option to reduce dependence on oil imports is to electrify transport.
鈥淐utting oil dependency through electrification isn鈥檛 just good for the climate. It鈥檚 also a hedge against future price shocks and supply disruptions. Transport is now Australia鈥檚 third-largest source of greenhouse gas emissions.
鈥淣ow that emissions are falling in the electricity sector, transport will be the highest emitting sector emissions source as soon as 2030.鈥
Israel attacked Iranian nuclear sites earlier this month, sparking the most turbulent period for oil prices since Russia invaded Ukraine in 2022.
The US bombing Iranian facilities this past weekend 鈥 and Iran鈥檚 subdued response 鈥 bookended a volatile fortnight of trading in the commodity.
Iran is the world鈥檚 ninth largest producer of oil and its land border meets a crucial choke point for ships carrying oil out of the Persian Gulf; Strait of Hormuz.
鈥淚f this crisis continues or if another one flares up, it could mark a turning point in Australia鈥檚 long dependence on foreign oil,鈥 Professor Dia said.
鈥淎ustralia currently imports 80 per cent of its liquid fuels, the highest level on record.鈥
On Tuesday, Federal Treasurer Jim Chalmers issued a public warning to Australia鈥檚 petrol companies.
鈥淩ecent spikes in the barrel price on international markets and volatility associated with unfolding events should not be used as an excuse for retailers to gouge customers or to increase prices opportunistically above and beyond the impact of events in the Middle East,鈥 Mr Chalmers wrote to Australia鈥檚 consumer watchdog.
He directed the regulator to be on the lookout for petrol stations attempting to 鈥渄o the wrong thing by Australian motorists,鈥 and implement non-justifiable charges on motorists.