The federal government is not rushing to join Asian counterparts in issuing work-from-home mandates amid fuel supply concerns, with a federal minister saying the decision is up to workers. The International Energy Agency recommended Australians work from home where possible, and drive at slower speeds to limit oil demand during the Middle East conflict.
Several Asian nations have implemented emergency workplace measures to conserve fuel. Countries including the Philippines and Vietnam have introduced a four-day working week. Pakistan has instituted a four-day week for government offices and closed schools. Yet Australia is taking a different approach, emphasising individual choice rather than government direction.
Asked about urging more Australians to work from home, Industry Minister Tim Ayres said: "Work from home is a viable option for many, many people, and they'll make that call. We're not going further than that. But we want a flexible industrial relations system, where Australians can take advantage of these rights and continue to contribute in a productive way."
The opposition has been equally resistant. Deputy Liberal leader Jane Hume said she would not support a mandate, arguing that such a measure would be akin to "COVID-style restrictions". "If people can work from home and they want to and it works for their employers, fine, I think that's terrific. But it doesn't help small businesses. It certainly doesn't help the truckers and the fishers and the farmers and the manufacturers and the miners that are relying on fuel supply."
The underlying concern reflects Australia's economic structure. Australia imports roughly 90% of its liquid fuel, meaning world crude oil prices have a direct impact on pump prices. It remains unclear how long the war in the Middle East will continue, with mixed signals from US President Donald Trump on the expected length of Operation Epic Fury. Australian economists have said that a three-month closure of the vital Strait of Hormuz could mean fuel prices could hit almost $3 a litre.
The government has focused instead on supply-side measures. The government has temporarily lowered fuel quality standards for 60 days to allow higher-sulphur fuel to be sold. They have said this will add roughly 100 million litres to the market each month. Since the conflict commenced two weeks ago, the Commonwealth government has taken swift action to release up to 20 per cent of its diesel and fuel reserves to help address regional shortages.
At the start of 2026, Australia has an estimated 36 days of petrol, 34 days of diesel and 32 days of jet fuel. This is the largest stockpile Australia has had in 15 years, but it still may not be enough. Yet a critical vulnerability remains. Australia's current emergency strategic fuel reserve is "non-compliant" and has been since 2012. Australia is the only IEA member that does not meet the obligation to hold 90 days of the previous year's net oil imports.
Energy experts have raised concerns about Australia's readiness and communication. An energy expert has likened Australia's response to the fuel crisis to watching a tsunami approach and doing nothing to get out of the way. Political messaging has faced scrutiny. John Blackburn, Australian Institute of Energy Fellow, has told media that the real danger isn't the fuel crisis itself but how Australia is handling it.
The Strait of Hormuz disruption represents the largest shock to global energy since the 1970s oil crisis. In an effort to mitigate the impact of the blockade along the Iranian coastline, the IEA has agreed to release 400 million barrels of oil. Australia's decision to resist work-from-home mandates reflects confidence in domestic reserves combined with concern that such measures could harm small business and essential industries. Whether that confidence proves justified depends on how long the Middle East conflict persists.