Australia’s fuel rationing plan revealed: $40 fuel cap explained

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    A federal government provision for fuel rationing could see strict purchase limits imposed on motorists at service stations.

    Amid conflict in the Middle East, record fuel prices have triggered widespread panic buying resulting in shortages, with more than 500 locations across Australia running out of petrol or diesel yesterday.

    The federal Minister for Climate Change and Energy Chris Bowen has ruled out fuel rationing for now, following assurances from Prime Minister Anthony Albanese that Australia has sufficient fuel security despite global supply pressures.

    However, provisions within the Liquid Fuel Emergency Act – updated in 2019 – outline a rationing mechanism that would limit motorists to $40 worth of fuel per transaction.

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    Under the proposal, fuel pumps would automatically shut off once the $40 limit is reached – a threshold now more quickly hit with national average prices currently around $2.38 per litre.

    At that price, filling the 55-litre tank of a Toyota RAV4 – Australia’s best-selling SUV – would cost around $130.90.

    With diesel prices reaching as high as $3.00 per litre, filling the 80-litre tank of a diesel-powered Ford Ranger would cost up to $240.

    A $40 cap would equate to approximately 16.8 litres of fuel, giving a RAV4 an estimated 357km of driving range based on its official combined consumption of 4.7L/100km.

    There is no provision preventing motorists from making multiple purchases, meaning a full tank could still be achieved across several transactions. The RAV4 would require just over three visits to fill.

    At the other end of the scale, a petrol-powered Ford Ranger Raptor would be limited to around 146km of driving per $40 fill, based on its official 11.5L/100km consumption figure.

    And the Ranger Raptor would require close to five transactions to fill its 80-litre tank, costing approximately $190.40 at current petrol prices.

    Mr Bowen has reiterated the government has no plans to introduce fuel rationing at this stage, instead announcing temporary changes to diesel fuel standards to help boost supply. MORE: No fuel rationing in Australia yet, but consider working from home – Bowen

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