Aussie motorists could soon shell out more than $2.60 a litre at the bowser as widening violence in the Middle East sends global energy markets into a fresh tailspin.
Unleaded petrol soared to a national average of $2.30 a litre on Wednesday, while diesel has climbed to $2.78.
In April, after the first oil shock from the Iran War, unleaded topped out at $2.59 a litre, while diesel hit $3.27.
NRMA spokesman Peter Khoury warned there was a serious possibility that prices could soon blow past those highs.
“It’s the Middle East,” he said.
“Every time we hope that there’s a de-escalation, our hearts are shattered. Anything is possible.”
He cautioned, however, that prices were volatile and since March, had jumped up and down like the “Manhattan skyline”.
“That’s what we expect to continue,” he said.
“We’re not seeing a de-escalation unfortunately, but, we’ve been here many times before.”
Parts of the country are already nudging towards to the $2.60 threshold.
On Wednesday, the BP Edgecliff station in inner-city Sydney’s was selling petrol for $2.49 a litre, while the Ampol at Benaraby in central Queensland listed petrol at $2.53.
Brent crude, the benchmark for global oil, is currently trading at US$105 a barrel, cracking the psychological $100 barrier on September 9 on rising violence in the Middle East.
Alongside the crucial Strait of Hormuz shipping channel, the war has now engulfed pipeline infrastructure in Saudi Arabia and the Bab al-Mandab Strait, threatening further disruptions to energy.
Mr Khoury said there would be “no relief” at the bowser until “those two crucial bodies of water reopened”.
The government has stated it is not considering a second cut to the fuel excise.
The first cut, introduced on April 1, cost $2.9bn.
Mr Khoury said a second relief package would be relatively easy to implement in the future if conditions deteriorated.
“They (the government) can do it (implement another excise cut) in a couple of days,” he said.
“They basically just notify the oil companies and service stations that they’re halving the excise.”
NatRoad CEO Warren Clark said truckers expected diesel to breach $3 and would be forced to pass on the price lift just to survive.
“We’re coming up to Christmas now, we’ve got people out there that are struggling to make ends meet, coming into a very expensive time in the year, and we’ve got fuel going through the roof,” he said.
“That’s the reality of it. Transport can’t cover the cost. Who can cover that cost? It has got to be passed on.”
The government, meanwhile, has begun early forward planning for possible fuel restrictions in the event that global energy supplies deteriorate.
Earlier this month, Commonwealth agencies were asked to consider options to limit demands on Commonwealth diesel consumption in the event that National Cabinet decided to move Australia onto a “Level 3” footing.
The government’s National Fuel Security Plan, launched earlier this year, outlines four settings in response to the energy crisis.
We are currently at Level 2, which states the government is taking “precautionary actions to shore up fuel supply” and Aussie consumers should “only buy the fuel (they) need” and “make voluntary choices to use less and avoid the impact of higher fuel prices”
Level 3 calls for “voluntary practical measures” to limit fuel use, while Level 4 calls on the federal and state governments to implement “stronger demand measures” to make sure “fuel is available for critical users”.
However, a spokesman for Energy Minister Chris Bowen told News Corp that the government is not “contemplating any change of preparedness settings”.
“Australia’s fuel remains secure,” the spokesman said.
“Australians should continue to buy fuel as normal, take no more and no less than what they need.
“Forty-one ships have arrived so far this month and we have more fuel than we had at the beginning of the war.”
As of September 8, Australia held 41 days of petrol reserves, 32 for diesel and 30 for jet fuel.
Extracted in full from: https://www.couriermail.com.au/business/economy/australian-economy/no-relief-aussie-petrol-prices-on-track-to-breach-april-highs-as-middle-east-war-hits-multiple-fronts/news-story/5bdc5243086a563007f49740e2531b14
