Australia urged not to panic buy fuel as Middle East tensions rise

Australians are being advised against panic buying fuel as tensions in the Middle East cause prices to rise. While oil prices have surged past $100 a barrel following renewed conflict between Iran and the United States near the Strait of Hormuz, and Houthi rebels targeting Saudi vessels in the Red Sea, experts say current prices are far from the record highs experienced in April.

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The average price for unleaded nationally has now gone up to $1.85. It's gone up just under 3 cents in the last 24 hours.

Peter Khoury, a spokesperson for NRMA, noted that the average national price for unleaded petrol has climbed to $1.85 per liter, with diesel at $2.26. However, he emphasized that these figures are substantially lower than the April peaks of $2.50 for unleaded and $3.27 for diesel. Khoury stated that prices would need to become "catastrophic" to reach those levels again.

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So based on those numbers, things would need to get pretty catastrophic to get back there again.

Khoury highlighted the "profound" impact of fuel price increases on the economy, citing an "immediate inflationary impact." He explained that nearly every industry relies on fuel, particularly transport, farming, mining, and manufacturing, which in turn affects prices for consumers. The current 16 cents per liter fuel excise reduction, halved from 32 cents, remains in effect until August 2, with the government expected to announce its future soon.

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It's not at the levels we saw in April, and we certainly hope we don't get anywhere near that, but what we do know is that petrol has a major impact on the family budget.

The NRMA spokesperson stressed that the "most important" action Australians can take is to avoid panic buying, recalling the supply chain pressures caused by excessive purchasing during earlier price spikes. He warned that stockpiling expensive fuel could lead to losses if prices subsequently fall, advising consumers and businesses to research for better deals.

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One of the biggest challenges we faced as a country was at the start of the conflict when people began panic buying.