Australia’s Diesel Prices Near $3 as Global Conflict Disrupts Oil Supplies
Diesel prices across Australia are approaching $3 a litre, as disruptions to global oil routes and refineries continue to push fuel costs higher.
The Strait of Hormuz, a key route for around 20 per cent of the world’s oil and liquefied natural gas supplies, remains effectively closed amid escalating conflict.
Australia’s national median diesel price has reached $2.88 a litre, up 1.67 cents. Sydney is averaging $2.84, while some eastern suburbs have already passed $3.
Melbourne prices range from $2.62 to $3.29, while Brisbane is averaging between $2.92 and $2.99. Adelaide prices range from $2.73 to $3.10. Darwin and Perth are averaging around $2.80.
Australia currently holds about 41 days of petrol, 31 days of diesel and 32 days of jet fuel. Energy Minister Chris Bowen is travelling to Saudi Arabia to discuss the continued flow of oil with Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud.
NRMA spokesperson Peter Khoury said there could be some relief if global oil markets stabilise. Regional benchmark prices fell sharply overnight, while gas oil prices dropped about $7 a barrel to $176.
However, Mr Khoury warned that predicting fuel prices remains extremely difficult while conflict continues.
He said a sustained reduction in prices would depend on the reopening of the Red Sea and Strait of Hormuz and an end to the conflicts affecting major oil supply routes.
Brent crude closed at about US$101 a barrel on Monday and has remained above US$100 since September 10.
The high prices have also triggered political debate in Australia. The Coalition has announced that, if elected, it would cut the fuel excise by about 27 cents a litre if Brent crude remains above US$100 for two weeks. It says the measure could save motorists around $15 per tank.
The Albanese Government previously introduced a temporary fuel excise cut at the beginning of the Middle East conflict, but the measure ended in August amid concerns about inflation.
Global energy supplies are also being affected by the Russia-Ukraine war. Ukraine has continued targeting Russian energy infrastructure, while Russia has reported large-scale drone attacks around Moscow, including damage to an oil refinery.
At the same time, Iran-backed Houthi forces in Yemen have continued attacks on Saudi targets, including oil infrastructure and export facilities.
With major oil routes facing continued disruption, Australian motorists remain exposed to further fuel price volatility in the weeks ahead.
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Source : News.com
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