Australian Prime Minister Anthony Albanese has warned economic shocks of the war in the Middle East would be felt for months and encouraged citizens to take public transport in a rare address to the nation.
Wednesday's address was broadcast simultaneously across major television and radio networks at 7pm (local time). Similar addresses were made by previous prime ministers during the Covid-19 pandemic and the 2008 global financial crisis.
Australia, which imports about 90% of its fuel, has seen petrol prices surge and experienced localised shortages as a result of the United States-Israeli war on Iran and the blockade of the Strait of Hormuz, a narrow waterway that normally carries about a fifth of global oil and liquefied natural gas supplies.
"I understand that right now it's hard to be positive," Albanese said. "The war in the Middle East has caused the biggest spike in petrol and diesel prices in history. Australia is not an active participant in this war. But all Australians are paying higher prices because of it.
"The economic shocks caused by this war will be with us for months."
"If you're hitting the road, don't take more fuel than you need - just fill up like you normally would. Think of others in your community, in the bush and in critical industries," he said.
"And over coming weeks, if you can switch to catching the train or bus or tram to work, do so."
The message came as a relief to some who were bracing for more drastic measures to be announced.
"I drive for work so I'm really happy he didn't say 'work from home only'," said Patrick Connelly, 24, a swimming pool technician who watched the address from a Sydney pub.
"He said to just drive as much as you usually do. Don't take more than you need."
Fuel stocks below recommended level
The month-long conflict has spread across the Middle East, killing thousands, disrupting energy supplies and threatening to send the global economy into a tailspin.
Albanese said the coming months "may not be easy" but said the government would do everything it could to help Australians.
Earlier this week, the government announced it would halve the excise on petrol and diesel and remove the heavy-road-user charge for three months to help households cope with a surge in costs driven by the war, at a cost to the government of around $A2.55 billion ($NZ3.07 billion).
Australia has its highest fuel stocks in 15 years, but they are still far below the International Energy Agency recommendation of 90 days. To boost supply, the government has temporarily relaxed fuel standards and also released petrol and diesel from its domestic reserves.
Treasurer Jim Chalmers said yesterday that small businesses affected by the war would be given easier access to credit.
"We know that the fallout is affecting everyone, but we believe that by working together, if everybody does their bit, we can get through this difficult period," he told reporters.
PM warned petrol plea risks stoking panic
While intended to calm Australians' nerves as the oil crisis worsens, Albanese's address could have the opposite effect, former Liberal adviser Tony Barry believes.
Albanese has a negative 17 favourability rating according to Barry's firm Redbridge, well behind opposition leader Angus Taylor and One Nation leader Pauline Hanson.
The pollster said giving an address to the nation with such a low approval rating was a recipe for disaster.
"Standing up and telling everybody not to panic is a sure way to make everybody panic," Barry told AAP.
"People are observing that going to the petrol station is now like a scene from Mad Max. They'll be expecting solutions from the government."
The decision to cut the fuel excise but then tell motorists to consider avoiding unnecessary petrol and diesel use was also politically flawed, Barry said.
"He's reduced the price of petrol, and now he's telling people don't buy this cheaper petrol."
Federal opposition leader Angus Taylor said more transparency about the availability of fuel was needed to allay Australians' fears of ongoing shortages.
"This was a rerun of Monday's press conference and it didn't give us the detail we need," he told Seven News on last night. "(The government) needs to update us daily on what the situation is."
Meanwhile, Western Australia's government activated emergency powers, allowing it to force the fuel industry to share information about its supply chains. The move will allow the state government to demand specific details about where fuel is and where it's needed, in a bid to alleviate shortages in some areas.
- Reuters and AAP
