Diesel fuel costs hit $2.70 a litre as Middle East conflict tightens supply
Diesel prices have jumped to around $2.70 a litre in Australia as conflict closes shipping routes carrying 20% of global oil supply.
Diesel prices across Australia are spiking as Middle East tensions choke off oil shipments. One carpenter told news.com.au a tank that cost $100 now costs $160 to $170, forcing him to absorb the extra cost since his employer covers fuel only for trips over 50km.
The Strait of Hormuz remains blocked to shipping, and Saudi Arabia's backup pipeline to the Red Sea was bombed Thursday. Houthi rebels have seized strategic islands controlling the Bab el-Mandeb Strait, another critical route.
Benchmark diesel prices have climbed US$3 per barrel to about US$195, up 66% since late June. Sydney diesel is around $2.23 per litre, but higher in regional areas.
- $2.70 a litre
- Diesel price spike
- $100 to $160-170
- Dan's tank cost increase
- 20% of global
- Oil supply through Hormuz
- 66% since late June
- Benchmark price increase
Why it mattersOne worker must absorb fuel cost spikes since his employer only reimburses long trips, showing how price rises hurt workers with little recourse.
AustraliaAustralian tradespeople, transport workers, and regional communities pay more at the pump each week as Middle East supply cuts push prices higher.
✓ Claims checked against the source and corrected before publish. checked 8 d ago
