Australia faces diesel surplus and soaring fuel prices

A government subsidy aimed at securing fuel supplies after Iran‑related shipping disruptions led Australia to import about 10 % more diesel than usual in April‑June. The resulting surplus left dozens of tankers anchored off the coast, costing taxpayers between $30,000 and $90,000 a day. Energy‑finance analyst Kevin Morrison said, “The government wanted to intervene … securing those supplies was very, very important because we were worried that there would be shortages.” With limited storage capacity, the backlog could push diesel prices toward $2.50 per litre.

At the same time, the end of a federal fuel excise discount triggered sharp price hikes in Canberra. Drivers reported filling up for $130 and diesel reaching $2.59 per litre. Motor mechanic Phil Morris complained, “The bowser kept climbing past $100,” while trucker Kamal Singh said the surge “eats into our pay.” The price spikes have forced motorists to travel farther for cheaper fuel, highlighting the immediate impact on households and transport businesses.