Monday 12 October 2026
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Australia

National Petrol Prices Surge Past $2.40 as Iran Conflict Disrupts Oil Routes

Middle East escalation pushes Brent crude to $US105, little relief in sight for motorists

By LineZotpaper
Published
Read Time2 min
Sources3 outlets
The national average price of regular unleaded petrol has climbed above $2.40 a litre for the first time in over six months, as escalating conflict in the Middle East deepens fears of a global oil shortage. According to new figures from the Australian Institute of Petroleum, the average rose by 3 cents over the past week to nearly $2.41 a litre.

The national average price of regular unleaded petrol has climbed above $2.40 a litre for the first time in over six months. According to new figures from the Australian Institute of Petroleum, the average rose by 3 cents over the past week to nearly $2.41 a litre. Local diesel prices eased by 1 cent a litre to $2.83, though they remain at levels not seen since the early stages of the Iran war.

The increase is driven by an escalation of the conflict in the Middle East. A surge in attacks on oil tankers in and around the Strait of Hormuz, alongside renewed fighting between Iran-backed Houthis and Saudi Arabia in the Red Sea, is threatening key global shipping routes. The situation intensified over the weekend following deadly attacks on Riyadh's main airport, pushing global crude benchmark Brent to as high as $US105 ($150) a barrel.

"Iran and its proxies in the Middle East have stretched the war front to demonstrate control over the region's oil production," said Vivek Dhar, energy and mining commodities analyst at the Commonwealth Bank.

The volatile situation threatens to override any hopes of near-term relief for Australian motorists, with industry concerns mounting over the security of crucial shipping lanes for crude oil and refined fuel exports.

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Analysis

Why This Matters

  • Australian motorists are directly affected by rising costs at the pump, straining household budgets already under pressure from broader inflation.
  • The transport and logistics sector faces higher operating costs, which are likely to be passed on to consumers through the price of goods.
  • The severity of the current disruptions raises questions about Australia's fuel security and the pace of the transition to electric vehicles and domestic fuel refining.

Background

Australia imports most of its refined petrol, making it susceptible to global oil price fluctuations. The Iran war has destabilised a region responsible for a large proportion of the world's oil transit. The Strait of Hormuz and the Red Sea are two of the world's most critical maritime chokepoints for tanker traffic.

Key Perspectives

[Energy Market Analysts]: View the coordinated attacks across multiple maritime chokepoints as a strategic escalation by Iran and its proxies to control regional oil production and dictate global prices, as highlighted by Commonwealth Bank analyst Vivek Dhar. [Australian Motorists]: Face immediate financial strain with no clear timeline for when prices might fall, creating anxiety over future household costs. [Critics/Skeptics]: Might argue that the Australian government should accelerate measures for fuel independence or provide temporary excise relief to ease the burden on consumers.

What to Watch

  • The weekly Australian Institute of Petroleum report for confirmation of a third consecutive price rise.
  • The Brent crude oil price, with any sustained move above $US105 a barrel signalling further pain at the pump.
  • Any formal announcement from the Australian government regarding fuel security measures or diplomatic initiatives.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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