Aussie motorists warned petrol costs could keep climbing – as Albanese government insists fuel supply is secure
Motorists in Australia have been warned that petrol prices are likely to keep rising, as renewed tensions involving Iran push up global oil costs and a temporary cut to fuel taxes is set to expire. The Albanese government has insisted fuel supply remains secure, but the combination of geopolitical instability and the winding-down of tax relief means drivers face little prospect of relief at the pump in the near term.
The government's scaled-back fuel excise reduction of 16 cents per litre on petrol and diesel is due to end on 2 August, and officials consider it unlikely to be extended. Pressure has mounted after US President Donald Trump threatened a "massive attack" on Tehran, saying Iran had not "received enough pain," reigniting fears over the fragile ceasefire. NRMA spokesman Peter Khoury noted unleaded petrol had already climbed to an average of $1.85 a litre following a three-cent overnight rise, with diesel prices also under upward pressure.
- Australian fuel excise discount of 16c/litre ends 2 August
- Renewed US-Iran tensions are driving global oil and petrol prices up
- Unleaded petrol now averages $1.85/litre after a three-cent rise
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of the government’s position argue that clear reassurance about fuel availability is important in preventing unnecessary panic and helping households and businesses plan. They may contend that global oil prices and refining disruptions can raise pump prices even when physical supplies are secure, so the government should distinguish affordability pressures from an immediate shortage. On this view, maintaining stable supply arrangements while monitoring prices is a responsible response to a volatile international market.
The case against
Critics argue that assurances about supply do little to ease the immediate strain on motorists if petrol prices continue to rise. They may say that a country exposed to international fuel markets needs stronger long-term measures to improve resilience and reduce households’ vulnerability to price shocks, rather than relying chiefly on reassurance. On this view, the government should explain more clearly what practical steps it is taking to contain cost-of-living effects and strengthen fuel security.