Fuel spike is coming: Relief at bowser not tipped to last
Fuel prices in Australia are expected to rise in the coming weeks after a brief period of relief, driven by escalating tensions in the Middle East and dwindling global oil supplies. Regional benchmark crude prices have reached their highest levels since the 2022 Ukraine war, increasing pressure on the federal government to extend its fuel excise cut. Despite slight overnight dips, oil executives warn of further price increases if the Strait of Hormuz remains closed.
- ▪Australia’s regional oil benchmark, Tapis crude, reached $US125 ($174) a barrel, the highest since the 2022 energy crisis.
- ▪The federal government faces pressure to extend its 26¢ fuel excise cut beyond the June 30 deadline.
- ▪The Strait of Hormuz closure by Iran in February has disrupted energy exports and driven up global oil prices.
- ▪Chevron and Exxon executives warned that depleted oil inventories and lack of spare capacity could lead to further price spikes.
- ▪Prime Minister Anthony Albanese acknowledged the war’s long-term economic impact but has not confirmed an extension of the fuel tax cut.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.