How To Protect Your Home From The Oil & Gas Crisis

The Iran war is ushering in an extended period of supercharged oil and gas prices. Experts say Australians can insulate themselves from rising bills by electrifying their home and transport – here’s how.

How Vulnerable Is Australia To The Oil Crisis?

The war in Iran is causing widespread damage to key oil and gas infrastructure in the Middle East which could take years to rebuild, and has largely halted traffic through the Strait of Hormuz – through which roughly 20% of the world’s oil and gas supply flows.

Six oil tankers that were supposed to head to Australia have been cancelled in recent days, with the disruption to fuel supplies just beginning.

A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) warns that Australia is in a vulnerable situation as it only keeps very low stockpiles of key petroleum products, including just 37 days of petrol.

The days of net imports worth of oil stocks kept by IEA countries at the end of December 2025.

What About Gas Prices?

The situation with gas is different – unlike oil, Australia is a major gas producer, but international prices are already surging and analysts expect that to be reflected locally, just as supply disruptions at the start of the Ukraine war saw domestic prices rise as gas companies cashed in.

Rystad Energy expects that Australian east coast gas prices will climb to $28 a gigajoule over the May-August period if the Strait of Hormuz remains closed – up from recent spot prices of $9-$10 a gigajoule.

Build An Electrification Fence Around Your Home

The IEEFA report finds that electrification is the most effective way for Australia to build resilience to fossil fuel disruption, finding that it is “the only solution that is mature, cost-effective and which can deliver reductions in oil imports at scale, replacing them with domestically supplied clean energy. The current oil shock is the first one to happen at a time when renewables and electrification offer a credible alternative.”

IEEFA research shows that upgrading homes with electric appliances, solar, batteries, and energy efficiency improvements can cut home energy bills by up to 90 per cent.

Luke Menzel, CEO of the Energy Efficiency Council, said the crisis highlights how fossil fuel reliance leaves Australians vulnerable.

“While the immediate impact of this crisis has been on petrol prices, a prolonged conflict could result in higher gas prices as well. Accelerating the switch from oil and gas to clean, efficient electricity reduces running costs and insulates Australian households and businesses from future economic shocks … Electrification is a better way to meet our energy needs in every way. It’s more efficient, cleaner, and almost always reduces running costs. Wherever we can – across buildings, transport and industries – we should electrify. And the earlier we do so, the faster we can enjoy the benefits,” Menzel said.

Menzel said that Australian households are increasingly embracing electricity over gas, but the transition needs to go up another gear.

“Around 5 million homes remain connected to reticulated gas networks, with another 2 million using LPG. They all need to make the shift from gas to efficient electric homes by 2050. We need a large-scale, long-term, national effort to upgrade our existing housing stock over the next 25 years into energy efficient, electrified homes through a range of improvement measures such as insulation and draughtproofing, and upgrades to efficient electric appliances,” said Menzel.

The Energy Efficiency Council wants to see Australian federal and state governments strengthen electrification incentive programs and standards to bolster resilience to global energy shocks.

A hot water heat pump is just one of the ways to electrify your home and reduce reliance on fossil fuels.

How To Electrify Your Home & Transport

There’s no need to wait for the government to act. There’s a host of ways Australian households can take the initative to insulate themselves at a time when the immense disruption to oil and gas markets is only just beginning:

• Electrify your transport: Interest in electric vehicles is surging due to rising petrol prices. If you haven’t got the patience to trickle charge your EV from a regular power point, you’ll also need a home EV charger. Get started by reading our guide to home EV chargers.
• Electrify your heating: Don’t expect to count on stable gas prices to affordably keep your home warm as we head towards the cooler months – switch from gas heating to efficient reverse cycle air conditioning. Do your research by checking out our guide to air conditioning.
• Electrify your hot water:  For many Australian homes, gas hot water is the only reason they have to continue paying a daily gas connection fee. To electrify your hot water read our guide to hot water heat pumps.
• Electrify your roof: Getting solar and a battery means you can power all of the above yourself, providing a level of self-reliance that’s not possible when relying on turbulent oil and gas prices to fill your car and heat your home. To learn more, check out our guide to solar panels and guide to home batteries.

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