Perth drivers are in for a rough ride at the fuel pump as prices soar to unprecedented heights, reaching as high as $2.07 per litre. This dramatic surge is primarily attributed to the escalating conflicts in the Middle East, which pose a significant threat to global oil supplies. The situation is further exacerbated by the fact that global oil and fuel prices were already trending upwards before the weekend, leading to higher local wholesale prices.
The average price of Perth's regular unleaded petrol is set to skyrocket from 159.3¢ on Tuesday to 188.7¢ per litre on Wednesday, marking the peak of the weekly price cycle. However, the real concern lies in the fact that higher prices are anticipated from next week onwards. EG Ampol will charge an average of $2.07 per litre for unleaded petrol, making it the most expensive option in Perth, followed by Caltex at $2.03 and 7-Eleven at 202.9¢. The cheapest available option is 163.8¢ from Vibe.
Motorists in Albany, Bunbury, and Busselton will face even higher prices, with averages of 173.2¢, 171.6¢, and 171.1¢ per litre, respectively. FuelWatch manager Ben Derecki attributes this to the global oil and fuel price trends and the ongoing conflict in the Middle East, which is expected to further increase world oil and fuel prices this week.
The Strait of Hormuz, a critical waterway handling approximately 20% of the world's oil and gas, has effectively been closed due to Iran's retaliation against US-Israeli strikes. This has led to a surge in wholesale diesel prices, which are critical to sectors like mining, transport, agriculture, commercial, and retail in Australia. The motoring group NRMA has warned that the conflict has created a surge in wholesale diesel prices overnight, and predicts that regular unleaded fuel will now rise to the low $2 mark this week.
In a worst-case scenario, Premium 98 unleaded fuel could hit a high of $2.28 a litre this week, while budget E10 unleaded fuel is forecast to reach a high of $2.01 at the bowser this week. AMP economist Shane Oliver explains that every $10 rise in global oil prices translates to roughly an extra 10 cents a litre paid by motorists.
Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission, urging them to monitor potential price gouging and warning service stations against "opportunistic" increases. He emphasized that the unfolding events should not be used as an excuse for retailers to exploit customers or increase prices beyond the impacts of the Middle East conflict.
This situation raises important questions about the stability of global oil supplies and the impact of geopolitical tensions on fuel prices. It also underscores the need for vigilance in monitoring price gouging and the importance of transparent communication between retailers and consumers. As the situation unfolds, it will be crucial to see how these factors play out and whether the Australian Competition and Consumer Commission takes appropriate action to protect consumers.
