Australia’s fuel rationing plan revealed: $40 fuel cap declared

A federal fuel rationing rule could result in strict purchasing restrictions being imposed on drivers at gas stations.

Amid conflict in the Middle East, record fuel prices have sparked widespread panic buying, leading to shortages. More than 500 locations across Australia ran out of petrol or diesel yesterday.

Federal Minister for Climate Change and Energy Chris Bowen has ruled out fuel rationing for now after Prime Minister Anthony Albanese assured Australia has adequate fuel security despite global supply pressures.

However, provisions of the 2019 updated Liquid Fuel Emergency Act establish a rationing mechanism that would limit motorists to $40 worth of fuel per transaction.

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Under the proposal, fuel pumps would automatically shut off once the $40 limit is reached – a threshold that is now being reached more quickly as national average prices are currently around $2.38 per liter.

At that price, filling the 55 liter tank of a Toyota RAV4 – Australia’s best-selling SUV – would cost around $130.90.

With diesel prices as high as $3.00 per liter, filling the 80 liter tank of a diesel-powered Ford Ranger would cost up to $240.

A cap of $40 would equate to about 16.8 liters of fuel, giving a RAV4 an estimated range of 357km based on its official combined fuel consumption of 4.7L/100km.