‘Getting worse’: Middle East conflict drives Australian petrol prices above $2 a litre

Australians are being warned that sky-high fuel prices will remain, as US President Donald Trump and The Islamic Revolutionary Guard Corps continue to exchange tit-for-tat blows in the critical Strait of Hormuz.

In a further blow to household finances, the price of Tapas – which supplies the Asian markets including Australia – rose by $9 a barrel over the last week to $US108 ($A152.02).

This has led to fuel prices in Australia jumping at the bowser to an average price for regular unleaded of $2.13, up from $1.55 in July.

NRMA spokesperson Peter Khoury told NewsWire rapidly rising fuel prices are already starting to hit motorists’ pockets.

“The price of diesel has gone up about 63 per cent since June while (unleaded) has gone up nearly 43 per cent since June,” he said.

“Those numbers don’t bode well for Australian drivers, as we’ve seen average prices rising in recent months.”

Mr Khoury warns motorists will remain under pressure until the conflict in the Middle East resolves.

“A de-escalation of the conflict and a reopening of shipping in the Strait of Hormuz is what we desperately need, but what we are getting is the opposite of that.”

“We are now seeing the conflict spreading to Yemen and Saudi Arabia and shipping in the Red Sea could be affected as well.”

Mr Khoury said it will take between 7 to 10 days for the full impact to be felt by motorists.

As a rough guide, every $1 a litre increase at the barrel means motorists have to pay 1 cent more at the bowers.

Crude is the main ingredient for everyday fuels such as petrol and diesel, which directly flows through the economy, as they hit supply chains, manufacturing, agriculture and shipping, which all impact inflation.

In a press conference on Saturday climate change and energy minister Chris Bowen said Australia fuel security remains strong.

He pointed out Australia has 41 days worth of petrol supplies, 32 days worth of diesel, and 30 days worth of jet fuel, while another 3.3bn litres will arrive over the next four weeks.