If you’ve been feeling a pinch at the petrol pump lately, you’re not alone—and you might want to buckle up, because things could get even bumpier.
With the ongoing conflict between Israel and Iran sending shockwaves through global oil markets, experts are predicting a potential turning point for Australia’s car culture.
Could this be the moment electric vehicles (EVs) finally take centre stage on our roads?
Oil shocks and the Australian hip pocket
Let’s start with the basics: Australia is heavily reliant on imported oil, with a staggering 80 per cent of our liquid fuels coming from overseas.
That means when global events rattle oil supplies, we feel it almost immediately at the bowser. According to Swinburne University’s Professor Hussein Dia, an expert in future urban mobility, the current Middle East tensions could see petrol prices soar to $2.50 a litre—or even higher—in some cities.
Sound familiar? It should. Professor Dia points to the oil shocks of the 1970s, when prices quadrupled almost overnight.
Back then, Australians responded by snapping up more fuel-efficient cars and exploring alternative energy sources. This time, he says, the smart money could be on electric vehicles.
Why EVs could be the answer
So, why are EVs suddenly in the spotlight? For starters, they’re not beholden to the wild swings of global oil prices.
If the flow of oil to Australia were suddenly cut off, we’d have just 50 days’ worth in storage before running dry. That’s a sobering thought, especially for a country as vast and car-dependent as ours.
Electrifying our transport isn’t just about dodging price shocks, either. It’s also a crucial step in tackling climate change.
Transport is now Australia’s third-largest source of greenhouse gas emissions, and as our electricity sector gets cleaner, transport is on track to become the nation’s biggest polluter by 2030.
The global picture: Why the Middle East matters
The recent flare-up between Israel and Iran has sent oil prices on a rollercoaster ride not seen since Russia’s invasion of Ukraine in 2022.
Iran, the world’s ninth-largest oil producer, sits right next to the Strait of Hormuz—a narrow waterway through which a fifth of the world’s oil passes. Any disruption there can send global prices skyrocketing.
Federal Treasurer Jim Chalmers has already fired a warning shot at petrol retailers, urging them not to use international turmoil as an excuse to gouge Australian motorists.
The consumer watchdog is on high alert for any unjustified price hikes.
Are Australians ready to make the switch?
While EVs have been gaining traction in Australia, we’ve lagged behind countries like Norway, China, and even the US.
High upfront costs, limited charging infrastructure, and a lack of government incentives have all played a part.
But as petrol prices climb and the environmental case for EVs grows stronger, the tide may finally be turning.
Recent years have seen a surge in new EV models, longer driving ranges, and more charging stations popping up across the country. State governments are rolling out incentives, and the federal government is under increasing pressure to do more.
What’s holding us back?
Of course, it’s not all smooth sailing. Many Australians still worry about ‘range anxiety’—the fear of running out of juice far from a charger.
Upfront costs remain higher than for petrol cars, though prices are slowly coming down. And while charging infrastructure is improving, it’s still patchy in regional and remote areas.
But as Professor Dia points out, the alternative—continued dependence on volatile oil markets—is looking less and less attractive.
What can you do?
If you’re considering making the switch to an EV, now might be the time to start doing your homework.
Look into government incentives in your state, check out the latest models, and think about your driving habits. Even if you’re not ready to go fully electric, hybrid vehicles can be a great stepping stone.
And if you’re sticking with petrol for now, keep an eye on prices and shop around—don’t let retailers take you for a ride.
Have your say
Are you thinking about switching to an electric vehicle? What’s holding you back—or what’s convinced you to make the leap?
Have you noticed petrol prices creeping up in your area? We’d love to hear your thoughts and experiences in the comments below. Let’s get the conversation rolling!
Also read: 9 myths about electric vehicles have taken hold. A new study shows how many people fall for them
