Australian petrol prices exceed $2.40 per litre amid Middle East tensions

Australian petrol prices have exceeded $2.40 per litre for the first time in over six months. According to the Australian Institute of Petroleum, the national average for regular unleaded rose by approximately 3 cents over the past week to nearly $2.41. While diesel prices saw a slight decrease of 1 cent to $2.83, they remain at levels not seen since the beginning of the Iran war.

The price surge is driven by escalating tensions in the Middle East, which have heightened fears of a global oil shortage. Key shipping lanes, including the Strait of Hormuz and the Red Sea, are facing threats due to attacks on oil tankers and renewed conflict between Iran-backed Houthis and Saudi Arabia. Recent deadly attacks on Riyadh’s main airport have further intensified regional risks, causing Brent crude oil to surge as high as $US105 per barrel.

Industry analysts note that combined diesel exports from the Middle East and Russia, which previously supplied 45 per cent of seaborne diesel, have reduced significantly since the conflict began in February. These geopolitical instabilities are currently overshadowing potential relief from diplomatic efforts between the US and Russia regarding diesel export bans.