There are several factors to consider here . Australia's oil production has decreased over time while it's oil usage has increased in the same period . So , at some point you lose your self sufficiency . Also , some of the oil that you produce might get a premium so it makes sense to export that and import the inferior stuff . An example of that would be when we had less sophisticated engines compared to now so therefore we exported our oil and imported theirs .
Linking our pricing to the world market is part of lowering trade barriers . After we let the first multinational in , we are kind of committed . Consider the size of our commodity exports . They are competing on a world price . Pretty hard to single out oil while we sell all the other stuff into a world market . If we owned the petrol companies then i could see the sense in this but we don't . They are all multinationals looking to make a buck . If their profit margin is reduced in Australia then they will direct their investment money somewhere else . That's why Africa is so hot at the moment . Big production numbers , lower cost per barrel.
Btw . Not sticking up for the concept here . That's just how I see the reality of it . I've always wondered why we didn't convert to lpg nationally in the 70's ? Imagine were we'd be now with that policy in terms of the local auto industry ?
