Australia’s ability to produce enough petrol is being put under the microscope amid surmounting pressure on the global oil supply chain. 

The war in Ukraine prompted many nations to introduce economic sanctions on Russia, the world’s second-largest oil producer.

The decision meant countries that previously relied on Russian oil are now looking elsewhere to secure supplies, creating increased competition.

As the impact trickles down to bowsers, motorists are feeling the bite of an international war.

But could a locally-produced petrol supply ease the pain for Australian drivers?

USQ Associate Professor of Finance Peter Philips told Sofie Formica we certainly have a few years’ supply underground.

“We currently produce per day an estimate of 350,000 barrels per day. We use about a million, so there’s a shortfall of two-thirds,” he said.

“There’s an estimate that Australia has known reserves – so there could be stuff we don’t know about – of about a billion barrels, which is about a thousand days’ worth.

“They’re untapped, so we’re not pulling it out of the ground as much as we could.”

Press PLAY below to hear a full explanation on how the prices at the pump are decided 

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