Allan Fels, the former chair of the Australian Competition and Consumer Commission (ACCC), has raised alarms about the potential need for fuel rationing in Australia if the conflict in the Middle East persists. His concerns were outlined in a recent article for the Sydney Morning Herald, where he highlighted the inadequacy of price hikes in curbing demand, suggesting that the government may soon face tough and possibly distressing decisions regarding fuel distribution.

“The prospect of fuel rationing is becoming increasingly likely in the coming weeks,” Fels asserted. This stark warning underscores the urgency of the situation as discussions have already begun about implementing less severe measures. These could include rationing access based on vehicle number plates, instituting alternate day driving schedules, encouraging remote work, and imposing speed limits to conserve fuel.

Fels cautioned against the pitfalls of these softer approaches, which governments often announce with much publicity. He noted that instead of diminishing demand, such measures might trigger panic buying, with the public rushing to petrol stations, fearing imminent rationing.

“Acting promptly is crucial,” he advised, pointing out Australia’s limited fuel reserves and the potential for early price hikes, long lines at service stations, and stockpiling behaviors. By addressing the issue sooner, the country may mitigate the severe consequences of any looming fuel crisis.

“One problem with soft approaches (often proclaimed by governments with much fanfare) is that rather than reducing demand, they induce a rush to the bowsers by a public troubled by the adoption of rationing…

“It is better to act sooner rather than later given our limited reserves and the spectre of early fuel price buying, queuing and hoarding.”

Australia last introduced rationing in 1979, following a strike at a local refinery during the fuel crisis brought about by the Iranian Revolution.

Before that, rationing hadn’t been used since World War II.