Australian diesel prices spike over Iran war
Sydney (20 July)
Australian fuel retailers lifted their average diesel prices by A$0.07/litre over the week to 15 July, largely because of Iran war-related refined oil price movements, data released by the Australian Competition & Consumer Commission (ACCC) show.
Diesel prices in Australia’s five largest cities averaged A$1.93/litre on 15 July, up from A$1.86/litre a week earlier, ACCC data released on 17 July show. But retailers in Hobart and Canberra – two smaller cities – cut their average diesel prices by A$0.02/litre and A$0.08/litre, respectively, over the week, according to the ACCC.
The Gasoil 10ppm international diesel price index rose by A$0.14/litre, from A$1.17/litre to A$1.32/litre, over 9-15 July because of increasingly unconstrained violence in the Strait of Hormuz. But the Mogas 95 international petrol price index increased by just A$0.03/litre over the same period, ACCC said.
Australian retail petrol prices tracked the Mogas index over 9-15 July, ACCC data show. Retailers in Australia’s five largest cities sold petrol for A$1.70/litre on 15 July, up from A$1.68/litre on 8 July.
Australia’s fuel reserves rose over the week to 18 July, despite the increase in retail fuel prices. “Australia currently has 46 days’ worth of petrol, … up five days on last week. We have 39 days’ worth of diesel, two more than last week. And 34 days of jet fuel, one more than last week,” Prime Minister Anthony Albanese said on 18 July.
“Australians can continue to have confidence in the work that the Government has done to ensure that we have fuel security … We remain at level two [of the National Fuel Strategy (NFS)],” Albanese added.
Australia faces effective fuel supply chains and localised disruptions at level two of the NFS. It has been at level two of the strategy since 30 March, weeks after the US and Israel attacked Iran.
By Avinash Govind