Wire flash
FinanceAustralian gasoline prices hit highest since March amid Middle East tensions
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Fuel prices in Australia surged to their highest level since March during the week ending July 26, driven by Middle East hostilities that pushed international crude oil to two-month highs. According to the Australian Institute of Petroleum, nationwide gasoline reached US$1.27 (AUS$1.82) per liter, while diesel prices also rose to their highest since March, adding economic and monetary policy pressure. Australia, despite being a major gas and LNG producer, imports most of its transportation fuel. The situation worsened after the Hormuz crisis and a fire at one of only two domestic refineries. In response, the federal government halved the fuel excise for three months in March and secured emergency fuel shipments from Brunei, South Korea, and China under its Strategic Reserve powers. Foreign Minister Penny Wong stated Australia is working with regional partners to address the global economic shock and ensure essential fuel flows.
Source report
Fuel prices in Australia reached their highest level since March last week, as hostilities in the Middle East pushed international crude oil prices to a two-month high.
According to the Weekly Petrol Prices Report published by the Australian Institute of Petroleum on Monday, nationwide gasoline prices in the week ending July 26 hit US$1.27 (AUS$1.82) per liter—the highest since the end of March. (One liter is approximately a quarter of a gallon.)
Diesel prices also rose nationwide last week to their highest since March, adding further pressure to Australia’s economic outlook and monetary policy.
Market Volatility and Supply Concerns
A recent de-escalation in tensions caused international oil prices to tumble early on Monday. However, it remains unclear whether diplomacy will prevail over hostilities, or for how long.
Despite being a major producer of gas and LNG, Australia relies on imports for most of its transportation fuel supply. The situation worsened in March due to the Hormuz crisis and after a fire broke out at one of the country’s only two refineries.
Government Response
At the end of March, the Australian federal government halved the fuel excise on gasoline and diesel for three months in an effort to ease financial pressure on consumers caused by surging fuel prices.
In April, the Federal Government announced it had secured approximately 100 million liters of additional diesel, with two shipments arriving from Brunei and South Korea. This marked the first deliveries under the government’s new Strategic Reserve powers.
In May, Australia secured three shipments of jet fuel from China, with more expected in the coming months. The country was scrambling to ensure fuel supply amid a global crunch, while one of its only two refineries remained out of operation due to a fire.
Official Comment
Australia’s Minister for Foreign Affairs, Penny Wong, commented at the time:
"Australia is working with countries in our region to respond to this unprecedented shock to the global economy and ensure the continued flow of essential fuels."
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
Source
OilPrice.com Daily News UpdateNeutral / independent
Part of this Story
Australian Gasoline Prices Hit Highest Since March Amid Middle East Tensions