<
https://reneweconomy.com.au/stop-ignoring-the-obvious-energy-efficiency-is-australias-best-diesel-insurance-policy/>
"The Iran conflict has laid bare Australia’s dependence on refined oil product
imports. Australia is particularly at risk when it comes to diesel imports.
Diesel makes up more than half of Australia’s oil product use (excluding oil
use for petroleum refining). Diesel is a key energy source for major economic
sectors, in particular transport, mining, agriculture and construction.
Australia is one of the world’s highest users of diesel on a per dollar GDP
basis, with a diesel consumption about three times as high as the US and Japan,
and twice as high as Canada.
In addition, Australia is highly dependent on diesel imports. Only 13% of the
country’s diesel is sourced from domestic production, with the vast majority
imported from Asian refineries.
Australia was reportedly the world’s largest importer of diesel in 2025,
representing between 6.5% and 10% of global seaborne trade, vastly more than
its share of global population and GDP.
Diesel trade is particularly affected by the Iran conflict because Gulf
countries are key suppliers of diesel and crude oil grades that yield the most
diesel. The Asian refineries that supply Australia’s diesel are mostly
configured to process Gulf crude oils. As a result, diesel prices have risen
more sharply (up to tripling compared with pre-crisis prices) and are more
volatile than petrol or crude oil.
A prolonged conflict would likely force most Asia-Pacific diesel exporters to
either slash their exports or even start importing to meet their domestic
demand.
China has already banned exports of diesel. Taiwan, Brunei and India have also
reportedly materially decreased their exports to Australia. Some countries
would be able to tap into their crude oil reserves to compensate for the loss
of Gulf supply, but they may be unwilling to do so to support exports in the
long run."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
