The federal government has launched a public advertising campaign encouraging drivers to minimise fuel use as a supply crisis continues to affect petrol and diesel availability.
The move comes as ministers work to steady a situation that has prompted fresh attention on Australia’s fuel security, the transition to electric vehicles, and the longer-term need for alternative energy sources.
In comments on the issue, Climate Change and Energy Minister Chris Bowen’s colleague, Energy Minister Madeleine King, said her department has been examining what a road user charge for electric vehicles might look like. Electric vehicle users currently do not pay fuel excise, and a road user charge has been raised as one possible alternative.
Road user charge under review
King said the work has been underway since December and was already included in the financial midyear outlook. She said the government is taking a cautious approach because it does not want to discourage the uptake of electric vehicles.
The minister said there is a balance to be struck between the potential tax benefits of a road user charge and the need to keep electric vehicles attractive to consumers. The government, she said, is still working through the issue.
Her comments point to an ongoing policy debate about how to fund roads fairly as more Australians shift away from petrol and diesel vehicles. While electric vehicles are central to the transition, they also create questions for the tax system as fuel excise revenues decline over time.
Energy security and electrification
King also linked electrification to broader national resilience, saying it is part of Australia’s economic security as well as its energy security. She rejected suggestions that the country should look backwards rather than adapting to changing technology and global energy trends.
She said the world has moved on in terms of energy security and that Australia needs to move with it. In her view, electrification will play a major role in the future, although some sectors will be slower to switch.
Those harder-to-abate sectors include aviation and some heavy haulage, which may take longer to electrify. For those industries, King pointed to low-carbon liquid fuels as an important interim option.
Domestic production of low-carbon fuels
King also argued that Australia should do more to produce renewable diesel and sustainable aviation fuel domestically rather than relying on overseas processing.
She said it makes little sense for Australia to grow canola, ship it overseas, have it turned into sustainable aviation fuel, and then buy it back again. In her view, the country should be able to produce those low-carbon liquid fuels at home.
The comments reflect a wider push inside government circles to strengthen fuel resilience while supporting the shift to cleaner energy. That debate sits alongside immediate concerns about supply, prices and the need to conserve existing fuel stocks.
As the crisis continues, the government is balancing short-term public messaging aimed at reducing fuel consumption with longer-term policy questions about road charges, vehicle electrification and domestic production of alternative fuels.
