Australian petrol prices have surged to approximately $2.30 per litre in the country's five largest cities, with diesel climbing even higher, as Middle East conflict disrupts global oil shipping routes. The government has ruled out reducing fuel taxes in response, rejecting the Coalition's proposed "Fuel Price Shield" which would automatically halve the fuel excise when Brent crude exceeds $US100 per barrel, with Finance Minister Katy Gallagher calling it an "unfunded, uncosted promise" and stating Labor prefers permanent cost-of-living measures instead.

Brent crude has reached approximately $US104 per barrel, approaching its May peak of $US114, with some experts predicting it could climb as high as $US150 as global stockpiles deplete. The Coalition claims its Shield policy would save motorists 27 cents per litre (or $15 per tank) and would be funded by an 80 per cent reduction in tobacco excise, whilst critics argue that regular excise adjustments would send confused price signals to consumers; the government maintains this approach helps manage inflation during economically sensitive times.