From Global Energy Conflicts to Your Power Bill: How Australians Can Stay Ahead
Published March 16, 2026
International conflicts, like those occurring in Iran and the surrounding regions, are not just international news, they affect Australian families in real ways. When oil and gas distribution is disrupted, prices skyrocket and Australian families feel the pinch. Knowing what’s happening and taking steps in your own home can help reduce electricity bills in Australia and shield your family from the uncertainties of global markets.
Why Australia is vulnerable to global energy shocks
About one fifth of the world’s oil & gas passes through the Strait of Hormuz, an important global chokepoint between Iran and Oman. A problem in this region can cause petrol, diesel, and gas prices to skyrocket around the world and Australia is no exception.
Australia relies on more than 90% of its refined fuel imports, making us very vulnerable to global supply chain disruptions. Although we produce a lot of gas in Australia, more than 80% of it is exported, making us vulnerable to the uncertainties of global markets. What has happened in the past, such as the 2022 invasion of Ukraine, shows us the effect: electricity bills rose by about $400 on average, petrol prices skyrocketed, and families suffered while exporters made money.
Oil price shocks and the price of petrol
The unavailability of petrol pushes its prices up. Following the invasion of Ukraine by Russia, the Australian Government reduced the fuel excise by half, but the retail price of petrol reached a record high. Economics indicate that if there is no end to the conflict in Iran, petrol prices will rise by 25 cents to $1 per liter, increasing the average household budget by $9-$35 per week.
Since 98% of vehicles in Australia are powered by petrol or diesel, most households are still vulnerable to the impact of international oil price shocks. Although the sale of electric vehicles is increasing, the transition is still in its early stages.
Gas prices and their effects on electricity bills
The gas market is also vulnerable. The latest attacks in the Middle East have affected Qatar, a gas giant. Although Australian households are not yet experiencing the effects of price rises, the threat is evident: when global gas prices increase, electricity prices go up too.
Historically, the domestic gas price was $3-$5 per gigajoule, but this changed with the invasion of Ukraine. Gas prices jumped to $30-$40 per gigajoule, showing how Australian electricity prices are affected by the global gas market. Gas fuels a substantial portion of electricity in Australia, and this directly affects electricity bills.
Renewables and electrification provide protection
The best way to protect households from global price shocks is to reduce their reliance on fossil fuels. Renewables and electrification not only reduce emissions but also provide a long-term solution for cost savings.
Gas to electric conversion Using electric appliances such as gas heaters, gas hot water systems, and gas stoves can save households between $500 and $1,900 per year. When combined with solar and battery storage, such upgrades can bring down overall energy bills by as much as 90%, thereby directly protecting households from price shocks.
Renewables enhance energy security and reduce bills
Solar and wind power are local, plentiful, and unaffected by international tensions, in contrast to fossil fuels. With the help of storage solutions such as batteries and pumped hydro storage, renewables can supply energy to homes, businesses, and industries.
Renewables and storage have been contributing nearly 45% to the Australian electricity mix over the past few years, lowering wholesale electricity prices by nearly 50% in late 2025. Australian consumers have been saving up to $417 per year on their electricity bills in 2024 because of the availability of cleaner and cheaper electricity. As electricity prices are expected to fall by 5% over the next five years with the rise of renewables, speeding up the transition to clean energy can help achieve economic benefits.
Accelerating the clean energy transition and electrification helps secure households, reduce bills, and achieve long-term climate objectives. For customized guidance on securing your home against rising energy bills and maximizing the potential of renewable energy and electrification, consult the experts at Utility Market.
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