In a rare address to the public on Wednesday, Australian Prime Minister Anthony Albanese cautioned that the economic repercussions from the ongoing conflicts in the Middle East would persist for several months. He urged citizens to consider using public transportation.
The speech was aired simultaneously across major television and radio channels at 7 p.m.
Similar addresses were delivered by previous prime ministers during the COVID-19 pandemic and the global financial crisis in 2008.
Australia, which depends on imports for about 90% of its fuel, is currently grappling with rising gasoline prices and regional supply shortages, exacerbated by the US-Israel conflict with Iran and the blockade of the Strait of Hormuz.
“I realize it’s tough to remain optimistic right now,” Albanese stated. “The war in the Middle East has led to unprecedented increases in petrol and diesel prices. While Australia isn’t directly involved, every Australian is feeling the burden of these higher costs.”
“The economic shock from this war will endure for many months,” he added.
Albanese also encouraged citizens to “do their part” to alleviate pressure on fuel supplies, advising against hoarding fuel and promoting the use of public transport in light of the upcoming Easter holidays starting this week.
“When you’re on the road, only fill up as much as you need. Fuel up as you typically would. Think about the community, local woodlands, and essential services,” he urged.
“And if it’s feasible, please opt for trains, buses, or trams in the coming weeks.”
Fuel inventory is below recommended levels
The ongoing conflict has intensified throughout the Middle East, leading to significant casualties, disruptions in energy supplies, and concerns about a sluggish global economy.
Albanese acknowledged that the upcoming months “may not be easy,” but reassured that the government would do everything possible to support Australians.
Earlier in the week, the government announced plans to halve the excise tax on gasoline and diesel and suspend heavy vehicle road fees for three months to assist households coping with rising costs, at an estimated cost of around $1.75 billion.
Australia’s fuel reserves are currently at their highest in 15 years, yet still fall short of the International Energy Agency’s recommended stockpile of 90 days.
Finance Minister Jim Chalmers stated that small and medium enterprises affected by the conflict would be granted easier access to loans.
“We recognize that the impact has touched everyone, but we believe that if we unite, we can make it through this challenging period,” Chalmers conveyed to the press.
