Australians face prolonged high fuel costs as diesel tops $3 a litre

Insights

• Diesel prices have exceeded $3 per litre in nearly every Australian capital city.
• Fuel costs in Australia are about 40% higher since the strikes that disrupted the Strait of Hormuz.
• Truck operators, farmers and small miners warn they may go out of business without contract renegotiation or relief.
• Construction firms are paying 8 to 10 percent fuel surcharges, adding to post-pandemic cost pressures.
• Airlines are raising fares or cutting flights in response to rising jet fuel costs.
• Consumer confidence has fallen to a record low in the ANZ-Roy Morgan survey dating back to 1973.
• Economists expect headline inflation to rise toward 5 percent, supporting market pricing for further Reserve Bank rate hikes.
• The government has asked Treasury to model sustained oil prices above US$120 a barrel and is considering targeted household relief.
• The International Energy Agency said oil and gas disruptions from the conflict are larger than past shocks, increasing the risk of prolonged supply constraints.
• Analysts say national fuel shortages could force rationing and trigger crisis-level fiscal and monetary responses if imports of refined fuel are disrupted.