Rising global fuel prices have again highlighted the vulnerability of Australia's transport system to instability in international oil markets, reinforcing the importance of accelerating a diversified transition to zero tailpipe-emission transport technologies, including hydrogen fuel cell vehicles and battery electric vehicles.

Recent geopolitical tensions have increased petrol and diesel prices in Australia, underscoring the risks associated with a heavy reliance on imported oil. Each instance of instability in oil-producing regions affects Australian households and businesses through higher fuel costs.

Australia imports approximately AUD 40 billion (US$ 28.4 billion) of oil annually, meaning fluctuations in global supply chains can quickly translate into higher domestic fuel prices and broader economic pressure. This continued exposure highlights the importance of diversifying the country's transport energy sources.

Unlike petrol and diesel, hydrogen can be produced domestically using Australia's renewable energy resources. The development of local hydrogen production could strengthen energy independence while supporting regional industries, infrastructure investment, and potential export opportunities.

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

Battery electric vehicles also contribute to reducing fuel consumption and supporting the electrification of the light-vehicle fleet. Hydrogen and battery electric technologies together provide complementary pathways for reducing emissions while maintaining reliability and flexibility across Australia's transport system.

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

With the Australian Government expected to review the National Electric Vehicle Strategy, the Hydrogen Transport Forum stated that the process presents an opportunity to adopt a balanced and technology-neutral approach to the transport transition.

"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.

"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."