The world is facing another energy crisis, and Australia is not immune to its effects. The recent invasion of Ukraine by Russia has led to a second energy shock, causing a significant rise in petrol prices, inflation, and interest rates in Australia. The government is taking short-term measures to address the immediate crisis, such as releasing oil from the strategic reserve and allowing the sale of fuel with higher sulfur content. However, these actions fail to address the underlying issue of Australia's heavy reliance on oil. The country's transport system remains dependent on diesel fuel, and the government's response to the crisis is not focused on reducing this dependency. This is a missed opportunity to accelerate the transition to electrification and reduce the country's carbon emissions. The government's decision to strip back tax breaks for high-end electric vehicles (EVs) and consider removing subsidies for diesel used by big mining companies is concerning. Australia has been slow to adopt EVs, with only 13% of new car sales being electric. However, EVs are already displacing oil use and cutting carbon emissions. The Mandala consultancy's modeling shows that Australia's EV fleet is saving the equivalent of 1.2 days of petrol use. The government should be incentivizing the adoption of EVs and electrifying mining operations to reduce the country's reliance on oil and diesel. The argument for restricting EV subsidies to cheaper models is valid, but the government's focus on cutting diesel subsidies for mining companies is appalling. The largest beneficiaries of the fuel tax rebate have been mining giants BHP and Rio Tinto. This reform has been discussed for years, but the government's concern about political backlash is preventing it from taking action. The current crisis is an opportunity to accelerate the transition to a more sustainable energy system, but the government's response is falling short. Australia must take bold action to reduce its dependency on oil and diesel, or it risks being left behind in the global shift towards renewable energy.
