"Panic Buying" of Fuel and Energy Crisis Loom Over Australia's Economy
SYDNEY, KOMPAS.com - The surge in global fuel prices due to conflicts in the Middle East is beginning to have a tangible impact on Australia’s domestic economic activities.
The pressure from rising energy costs is not only affecting the transportation and tourism sectors but also potentially altering public mobility patterns and monetary policy prospects in the country.
The sharp increase in fuel prices has triggered changes in consumer behaviour, heightened concerns over energy supply resilience, and added uncertainty for businesses.
Leigh and Lindsay Ludwig, a retired couple from the Gold Coast, have decided to cancel their six-month caravan trip planned to explore Far North Queensland, the Northern Territory, and Western Australia.
They expressed worries about the risk of running out of fuel in small towns.
“I am more than just disappointed. I am really very angry,” said Lindsay Ludwig, quoted from ABC Australia, Wednesday (18/3/2026).
The rise in energy costs is also being felt in the air travel and cruise sectors. Professor Susanne Becken from Griffith University stated that the fuel price surge is increasing pressure on all modes of tourist transportation.
At the same time, demand for international tourism to Australia is experiencing a downturn.
Data from the Australian Bureau of Statistics shows that the number of foreign tourists fell by 8.2 percent in February 2026 compared to the same period the previous year.
Supply limitations in remote areas are prompting communities and the tourism industry to promote short-distance travel as an alternative.
Experts also assess that the volatility in global energy prices demonstrates the need to evaluate the travel sector’s dependence on fossil fuels.
CEO of the Australian Caravan Industry Association, Stuart Lamont, said there have been no major cancellations for the Easter travel period.
“The bigger concern is about fuel availability in regional areas, as well as the current flooding in northern Australia, rather than prices,” he added.
He warned that some areas could be severely affected.
“We are very concerned that these areas will have a ruined holiday season, based on media comments,” said Lamont.
Reports of panic buying, or large-scale fuel purchases, are significantly increasing demand in several regions of Australia.
Energy expert and former Royal Australian Air Force officer John Blackburn said demand in some areas has risen by around 35 to 40 percent.
“The reason we are facing problems is because people who see what is happening in the Middle East are rushing to buy extra stocks,” he said.