Global fuel instability highlights need for diversified zero-emission transport strategy

Rising global fuel prices are once again highlighting the vulnerability of Australia’s transport system to international oil market instability, reinforcing the importance of accelerating a diversified transition to zero tailpipe-emission transport technologies – including hydrogen fuel cell vehicles and battery electric vehicles.

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Recent geopolitical tensions have driven petrol and diesel prices higher in Australia, underscoring the risks associated with heavy reliance on imported oil. Each time instability occurs in oil-producing regions, Australian households and businesses feel the impact through higher fuel costs.

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Australia imports around $40 billion of oil each year, meaning fluctuations in global supply chains can quickly translate into higher domestic fuel prices and broader economic pressure. This ongoing exposure reinforces the importance of diversifying Australia’s transport energy sources.

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Unlike petrol and diesel, hydrogen can be produced domestically using Australia’s abundant renewable energy resources. Developing local hydrogen production provides an opportunity to strengthen Australia’s energy independence while supporting regional industries, new infrastructure investment and future export opportunities.

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Hydrogen offers a pathway to strengthen Australia’s energy security by enabling transport fuels to be produced domestically from abundant renewable energy resources. Hydrogen fuel cell vehicles also provide important capabilities for segments where battery electrification alone may face practical limitations, including long-distance freight, high-utilisation commercial fleets, regional transport corridors and heavy transport applications.

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Battery electric vehicles are also playing an important role in reducing fuel consumption and supporting electrification of the light vehicle fleet. Together, hydrogen and battery electric technologies provide a complementary pathway for reducing emissions while maintaining reliability and flexibility across Australia’s transport system.

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Globally, governments are increasingly adopting hydrogen mobility solutions as part of their electrification strategies. Major economies including the United States, Europe and China are investing in hydrogen vehicles, refuelling infrastructure and supply chains, recognising the technology’s role in supporting heavy transport, freight and industrial mobility.

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With the Australian Government expected to undertake a review of the National Electric Vehicle Strategy, the Hydrogen Transport Forum said the process presents an important opportunity to ensure Australia adopts a balanced and technology-neutral approach to the transport transition.

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“Australia’s transport system will be stronger and more resilient if we pursue a diversified strategy that includes hydrogen, battery electric vehicles and other emerging eco-friendly technologies,” the Forum said.

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“Other major economies are already deploying hydrogen transport solutions as part of their electrification strategies. As Australia reviews its National Electric Vehicle Strategy in the second half of this year, there is an opportunity to ensure our policies support a full suite of vehicle technologies suited to Australia’s geography, freight task and energy strengths.”

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ENDS

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Media contact
Claire Johnson
Hydrogen Transport Forum
M: 0401 282 550
E: hello@hydrogentransportforum.com.au

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About the Hydrogen Transport Forum

The Hydrogen Transport Forum (HTF) is an industry collaboration established by automotive manufacturers to accelerate the deployment of hydrogen transport in Australia. Founding members include BMW, Hyundai and Toyota, with additional participants including Foton Mobility Distribution and KRW Hydron. The Forum works with government and industry partners to support the development of hydrogen-powered vehicles, refuelling infrastructure and supply chains, helping position Australia as a leader in zero-emission transport solutions.

Find out more:
https://www.hydrogentransportforum.com.au/

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