Australia’s heavy reliance on imported diesel has left the economy exposed to global shocks, highlighting the need to cut demand rather than simply increase supply.

Malcolm Roberts from One Nation is right – at least about one thing. We’ve been sleepwalking into a fuel security crisis for decades.

We have just 34 days of diesel reserves (at time of writing). Maybe 25 if you only count fuel actually on Australian soil, instead of cargo on foreign-flagged ships that could be redirected at any moment.

We’ve closed six of our eight domestic refineries in two decades and import 90 per cent of our refined fuel – much of it originating in Russia or the Middle East, and making its way through the South China Sea to get here.

When the conflict in Iran functionally closed the Strait of Hormuz last week, petrol hit $2.49 a litre in Sydney. In remote Australia, prices approached $4, and panic buying in regional towns has led to some service stations temporarily running out of fuel. Major sectors of the economy, like farming and food distribution, have found it hard to guarantee a supply of diesel for the months ahead.

Even as oil tankers start moving again the vulnerability is real, and the anxiety will remain.

Where One Nation and the Nationals are wrong are their solutions. Their policy proposals amount to little more than expensive nostalgia. One Nation wants to rebuild domestic refineries, scrap net zero and convert gas to liquid fuel. The Nationals want to halve fuel excise for a........

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