Brief
Australian petrol prices top $2.40 a litre as Iran war fuels supply fears
National average regular unleaded rose to $2.41 per litre, while diesel slipped slightly, amid heightened Middle‑East tensions.
By Felo News Desk · Published
Australia’s national average price for regular unleaded petrol rose above $2.40 a litre for the first time in more than six months, reaching nearly $2.41 per litre, according to the Australian Institute of Petroleum, SMH reported on October 12, 2026.
The increase of 3 cents per litre over the past week coincides with an escalation of the Iran‑backed Houthi attacks on oil tankers in the Strait of Hormuz and renewed fighting between the Houthis and Saudi Arabia in the Red Sea. Analysts say the conflict has closed a second export route, tightening global supplies.
Energy‑market analyst Vivek Dhar of the Commonwealth Bank warned that Iran and its proxies are extending the war front to control regional oil production. He linked the price surge to the broader risk of a regional fallout after deadly attacks on Riyadh’s main airport, which pushed the Brent crude benchmark up to US$105 (AU$150) a barrel.
While petrol prices climbed, diesel fell by 1 cent to $2.83 per litre, a level not seen since the early stages of the conflict. Dhar noted that any relief for diesel may depend on potential Russian diesel exports, which could be affected by Ukraine’s ongoing attacks on Russian oil infrastructure.
Peter Khoury, spokesman for the NRMA, attributed the recent dip in Singapore Gasoil – the regional benchmark influencing Australian diesel – to a Group of 7 decision to release 100 million barrels of diesel and crude oil from strategic stockpiles, roughly one day of global demand.
Federal Energy Minister Chris Bowen reiterated that Australia does not intend to follow the United States in sourcing diesel from Russia, emphasizing that the country has sufficient fuel reserves – 43 days of petrol and 31 days of diesel – and that dozens of tankers are booked to import more fuel in the coming weeks.
Key facts
- National average regular unleaded petrol rose to $2.41 per litre, up 3 cents in a week. (smh.com.au)
- Diesel price fell 1 cent to $2.83 per litre, the lowest since early conflict stages. (smh.com.au)
- Brent crude peaked at US$105 (AU$150) a barrel after attacks on Riyadh airport. (smh.com.au)
- Australia holds 43 days of petrol and 31 days of diesel in reserves. (smh.com.au)
- Group of 7 released 100 million barrels of diesel and crude from strategic stockpiles. (smh.com.au)
Sources
- [1] smh.com.au — originally reported as “Petrol prices: National petrol prices surge past $2. 40 a litre with little relief in sight”
