Who Knew? Australia has a Rather Spectacular Achilles’ Heel Hiding in its Economy
By Mario Nawfal
It consumes more diesel per person than any other OECD country shown here.
1.10 tons of oil equivalent per capita, almost twice the U.S. and nearly seven times Mexico.
That makes sense when you look at what Australia actually runs on: mining machinery, agriculture, heavy transport and enormous freight distances.
And here comes the slap in the face:
Australia imports roughly 87% of its diesel.
And we’re currently discovering what that means.
The OECD says Australian diesel prices surged about 66% by mid-April after the Middle East energy shock, even with a temporary cut in fuel taxes.
Australia doesn’t just have an oil-price problem.
But has built an extraordinary amount of its physical economy around a fuel it largely cannot make itself.
This whole thing looks increasingly difficult to manage.
