How EV adoption insulates Australia against oil supply shocks
16.03.2026 - 03:52
Mandala’s latest research finds that the adoption of electric vehicles is helping to insulate Australians from the oil supply shocks. This analysis looks at the contribution of Australia’s electric vehicle fleet to our petrol reserves, as well as the savings in fuel costs for Australian households.
Australia currently holds 36 days of petrol, 34 days of diesel, and 32 days of jet fuel in reserve. This fuel supply remains anchored to one of the world’s least stable regions, and therefore every reduction in Middle East dependence is important for Australia.
Our modelling found that our current adoption of electric vehicles (EVs), including hybrid and fully battery, has started to materially increase Australia’s fuel independence, with passenger EVs already saving the equivalent of 1.2 days of petrol use.
Policies such as the Fringe Benefits Tax exemption for EVs and the New Vehicle Efficiency Standard have helped increase EV uptake, but Australia still lags behind global leaders significantly. If Australia matched Norway's EV penetration rate, the highest in the world, our petrol reserve cover would grow by 11 days, a 30 per cent increase on the current 36-day reserve.
Our analysis also found that if the elevated fuel prices from the Middle East conflict persist for a year, the average two petrol-vehicle household could face more than $700 in additional annual fuel costs, a rise of at least 23 per cent on pre-conflict fuel bills.
Read the full research note here.
Read our latest posts
The case for a fixed, four-year term for Australia’s federal government
Mandala supported 4 Year Terms Australia in their latest report, "The case for a fixed, four-year term for Australia's federal government", building the economic case for change. Australia is the only liberal democracy that combines a three-year term with no fixed election date. We have found that moving to fixed, four-year terms would generate up to $93 billion in economic benefits over 20 years.
17 Aug, 2026
Time to make a difference: Economic and fiscal benefits of Preventive Care+
Mandala's latest research, prepared for the Australian Self-Care Alliance, examines the economic and fiscal case for Preventive Care+, a proposed health assessment and coaching program for Australians aged 55 to 59. The research finds that early detection and self-care could deliver $233 million in combined health, income and fiscal benefits per cohort over ten years, including $26 million in net health system savings from delaying the progression of four common chronic conditions. Participants could also remain in the workforce for one to three additional years, generating $159 million in additional income, $19 million in additional superannuation contributions and $29 million in additional tax receipts per cohort over ten years. There are funded health checks for 45 to 49-year olds and 75 year-olds, but not for people in their late 50s, a period when chronic conditions frequently emerge and worsen. This report sets out the potential benefits of instituting a health assessment and a coaching program to intervene at a time that can yield meaningful outcomes.
23 Jul, 2026
Unlocking a Virtuous Cycle: Overcoming Barriers to AI in Australian Energy Systems
Mandala's latest research, developed in partnership with Microsoft, examines the barriers to transformative AI adoption in Australia's electricity system. The research finds that AI is one of the few tools able to unlock capacity and efficiency from the existing grid without waiting on new transmission and generation capacity, yet adoption today remains incremental. Three soft barriers, a lack of shared strategy, weak investment incentives and siloed data, are constraining Australia's ability to capture this potential. Overcoming them will require joint action from government, the technology industry and energy utilities to prove AI's value, align policy settings and fund pilots through to deployment.
8 Jul, 2026
Demonstrating the local benefits of AI infrastructure in Wisconsin
Mandala's latest research, prepared for Microsoft, examines the economic impact of hyperscale data center investment on Wisconsin's communities, businesses, and workforce. The research finds that committed data center projects will channel $16.5 billion to local suppliers, support more than 9,000 jobs during construction, and generate lasting economic activity across every county in the state, thereby extending Wisconsin's long tradition of industrial leadership into the AI era.
1 Jul, 2026