The "Fuel for thought: the future of transport fuels" report shows that if oil production peaks, prices could climb as high as $8 a litre by 2018.

The report, a result of a year's deliberations by the Future Fuels Forum convened by CSIRO, also found that Australia's transport fuel mix would need to substantially change in response to issues such as climate change and oil prices.

"Results such as this could be seen as a catalyst for early action on the development and roll-out of alternative fuel options, low emission vehicle technologies and infrastructure that supports sustainable transport," director of CSIRO's Energy Transformed Flagship Dr John Wright said.

"Securing access to affordable and sustainable fuel underpins Australia's economy and way of life, and as a nation with relatively high vehicle use we are vulnerable to the economic, environmental and social impacts of rising oil prices and rising temperatures," he said.

Wright also said Australia's fuel mix would shift in the near term to include more use of diesel, gaseous fuels such as LPG and hybrid electric vehicles.

Hydrogen, synthetic fuels from coal or gas, and advanced biofuels that will not affect food production would most likely increase after 2020, he added.

The report hopes to engage leading community, industry and government bodies in discussion on ways to establish a secure and sustainable transport fuel mix by 2050.