Posted Sat 25 Jul 2026 at 2:19pm
Sat 25 Jul 2026 at 2:19pm
Energy minister Chris Bowen says Australia currently has more fuel in store than when the conflict in the Middle East began. (ABC News)
In short:
The federal government is moving to reassure motorists about Australia's fuel supply as the conflict between the United States and Iran re-escalates once again.
Oil prices tipped over $US100 ($143) a barrel this week for the first time since May, with the national average unleaded 91 price at $1.88 per litre on Saturday and diesel at $2.30.
What's next?
The fuel excise discount is due to expire on August 2, having been halved this month to 16 cents per litre.
The federal government is moving to reassure motorists about Australia's fuel supply as petrol prices rise amid renewed clashes in the five-month-old war in the Middle East.
During the week oil prices crept over $US100 ($143) a barrel for the first time since May.
It follows a fresh escalation in the conflict between the United States and Iran, with US President Donald Trump promising "major military punishment" for Tehran over attacks by Yemen's Houthi rebels on Saudi shipping in the Bab el-Mandeb Strait near the Red Sea.
The expansion of the conflict along with reduced output from the US has prompted warnings from some analysts of "more sustained" price pressure over the months ahead.
Today federal energy minister Chris Bowen said motorists could have confidence in Australia's fuel supplies despite the uncertainty in the Middle East.
"One thing Australians can be certain about is that our fuel supply continues to be solid and secure," he said.
"I can tell you that we have 42 days' worth of petrol, 38 days' worth of diesel, and 32 days' worth of jet fuel.
"All of these figures are more than we had on the day Iran was first bombed, on February 28th."
The federal government's fuel excise cut was halved this month and expires on August 2. (Reuters: Hollie Adams)
He said in addition to the 6.2 billion litres of fuel in stock, 51 ships were on the water with 3.1 billion litres locked in for delivery over the next month.
"Obviously, as we've said consistently, we want to see the situation in the Middle East return to normal," Mr Bowen said.
"In the meantime, we'll continue the efforts and the work with our trading partners, with our refiners, to ensure that Australians can have confidence in our fuel supply."
Mr Bowen gave no indication whether the fuel excise discount due to expire on August 2 would be extended again, but it has previously not been ruled it out.
The cut was halved from 32 cents per litre to 16 cents per litre this month, with the discount to the Heavy Vehicle Road User charge also trimmed.
On Friday NMRA spokesman Peter Khoury said he believed the federal government was keeping the option of extending the excise open and could make an announcement in coming days.
At lunchtime today the national average price of unleaded 91 was $1.88 per litre, with diesel at $2.30 per litre.
Sydney had the lowest average capital city price for unleaded 91 at $1.83, more than 10 cents below the average price per litre in Darwin.
