10.04.2026
Australia may export energy, but most of the petrol and diesel we use is imported.
Most of our fuel comes from the Asia-Pacific, and much of it is made from Middle East oil.
Diesel is critical to freight, mining and agriculture, so price shocks spread quickly.
Rising fuel prices affect most Australians, either at the bowser or through higher costs being passed on by businesses. In this NAB News explainer, NAB Senior Economist Taylor Nugent explains where Australia’s petrol and diesel come from and why, despite being a major energy exporter, we can still be hit hard when global markets are disrupted.
Energy exporter — but fuel importer
Australian Government data shows Australia is a substantial net exporter of energy, including coal and natural gas, with net exports equating to over two-thirds of production. Around 88% of black coal energy production was exported in 2023-24, as was around 74% of domestic natural gas production and 96% of crude oil production.
However, Australia still imports most of the petrol and diesel used to power cars, trucks and planes. Nugent says that leaves households and businesses exposed when global oil markets are disrupted.
“Despite being a net energy exporter, Australia remains highly exposed to disruptions in global oil markets due to its heavy reliance on imported refined fuel,” Nugent said.
“Australia imports about 80% of its refined product usage, up from about 30% in 2011.”
Where is our fuel coming from?
Most fuel used by Australians is refined in the Asia Pacific region, but the oil itself comes from the Middle East. Nugent says domestically refined fuels only make up a small proportion of the fuel supply chain.
“In 2025, domestic refinery production accounted for 21% of all refined product supply. The remaining 79% was imported,” he said,
“Singapore is the largest source of gasoline (accounting for 36% of supply), Korea dominated diesel imports (25% of supply), and China accounted for 28% of aviation fuel supply.
“Supply overwhelmingly came from the Asia Pacific Region, which accounted for 96% of imports and 76% of supply. In turn, most of that regional refining capacity sources crude oil from the Middle East.”
Diesel: the fuel Australia relies on
Nugent also points out that Australia has a heavy reliance on diesel compared to other economies. That’s why changes in diesel prices can quickly show up in the cost of moving goods, running equipment and delivering services across Australia.
“Diesel is especially critical, Australia uses more diesel per person than any country with a population above 500k, reflecting use in road freight, mining and agriculture,” Nugent said.
“Road transport accounts for just over half of refined fuel demand, embedding fuel costs across economy‑wide supply chains and household budgets.”
Low stockpiles mean little buffer
Fuel stockpiles help cushion Australia if imports are delayed or disrupted. Nugent says Australia’s buffer is thin — and the numbers show why.
“Fuel stocks, measured in days of consumption coverage, are comparatively low in Australia,” he said.
“Especially for gasoline and diesel, where days of consumption cover was just 26 and 25 days respectively in the latest data.
“Australia held the lowest oil stocks in days of net imports terms among IEA member countries in 2025. Low stock cover means even short-lived disruptions to imports could translate into supply shortfalls.”
While the priority is shoring up supply in the immediate term, Australia must now consider how the country avoids future shortages.
“As the Government moves to shore up supply for the coming months, the bigger question is whether Australia’s energy supply chain is robust enough for a more volatile world, and what changes are needed to strengthen energy security over the long term,” he said.
For more, visit Economic Comment: Fuel in Australia – Where does it come from and where is it used? - a report by NAB Economics and Markets Research.
