Remote communities in the Northern Territory are paying more than $3 per litre for diesel, as the cost of fuel continues to climb across the country.

In the Arnhem Land community of Ramingining, 580 kilometres east of Darwin, diesel is now selling for $3.29 per litre.

East Arnhem Regional Council chief executive Dale Keehne said fuel prices were always higher in remote areas, but this latest price hike was record breaking and would have a “massive impact” on people’s way of life in the region.

“We’re talking about people whose family budget would be notably lower than in other parts of Australia,” Mr Keehne said.

Higher fuel prices in the NT will impact on people’s way of life.(ABC News: Margaret Burin)

The average price of diesel in the Northern Territory now sits at $2.16 per litre, 23 cents higher than in January, according to MyFuelNT.

With fuel prices expected to rise further after the US announced a ban on Russian oil imports earlier this week, Mr Keehne said communities were bracing for more impacts.

“Price rises are hitting across all levels; from raw materials to manufacturers, wholesalers and freight, which is affecting the range of Aboriginal organisations delivering services to communities.”

Call for fuel tax to be cut

Mr Keehne said the “most direct and effective way” of addressing soaring fuel prices in remote communities would be for the federal government to remove or reduce fuel excise.

“The tax [rate] for that is 44.2 cents a litre, so that’s a good chunk of the costs,” he said.

“In the scheme of things, the number of people in East Arnhem Land and other remote parts of NT is low for the whole country.

“So the cost effect [of cutting fuel excise] for the government would be minimal, but the difference it would make to people’s quality of life would be massive.”

Fuel prices are expected to rise further after the US banned the import of Russian oil earlier this week. (ABC Rural: Max Rowley)

$3 a litre coming to a bowser near you?

President of the NT Road Transport Association Michael Swart said he would not be surprised if $3 per litre for diesel was soon being paid in Australia’s major cities.

“It’s an absolutely scary thought for transport operators,” he said.

“Supply is the biggest issue at the moment with Ukraine and Russia. But until we see a loosening of supply, we’re going to see the price continue to rise.”

Extracted in full from: Fuel price cracks $3 per litre in Arnhem Land, putting pressure on remote communities – ABC News