{"id":513065,"date":"2026-03-02T03:19:13","date_gmt":"2026-03-02T03:19:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/513065\/"},"modified":"2026-03-02T03:19:13","modified_gmt":"2026-03-02T03:19:13","slug":"petrol-prices-tipped-to-surge-an-extra-30c-per-litre-as-middle-east-tension-escalates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/513065\/","title":{"rendered":"Petrol prices tipped to surge an extra 30c per litre as Middle East tension escalates"},"content":{"rendered":"

Australians are being warned to brace for a sharp spike in petrol prices with experts forecasting increases of up to an extra 30 cents per litre as tensions in the Middle East<\/a> rattle global oil markets.<\/p>\n

Dr Christian Bayliss, founder of Fortland Asset Management, told Sunrise on Monday the market was already projecting a 6 to 10 per cent increase in fuel costs following recent attacks in the Strait of Hormuz, a critical shipping corridor off Iran\u2019s south coast.<\/p>\n

WATCH THE VIDEO ABOVE: Petrol prices could surge amid Middle East tensions<\/p>\n

Know the news with the 7NEWS app: Download today Arrow<\/a><\/p>\n

About one-fifth of the world\u2019s oil supply passes through the narrow waterway each day, but shipping has largely paused amid reports Iran\u2019s Revolutionary Guard has warned vessels not to transit the strait.<\/p>\n

Bayliss said the flow-on effect for Australian motorists could be significant.<\/p>\n

\u201cThe simple rule of thumb is that for every dollar, we have about a one-cent increase. So if we\u2019re up $30, that will equal 30 cents at the bowser,\u201d Bayliss explained.<\/p>\n

But the hit to fuel prices might just be the beginning.<\/p>\n

Australia has a relatively high exposure to petroleum products, with about 12 per cent of the Consumer Price Index basket directly tied to fuel and an estimated 54 per cent indirectly affected through products such as lipstick, garbage bags and synthetic materials like polyester.<\/p>\n

\u201cIt all needs oil. And that\u2019s the stuff that\u2019s ultimately going to feed through into CPI and therefore feed into the RBA\u2019s thinking as well,\u201d Bayliss said.<\/p>\n

Airfares could also take a hit with higher jet fuel costs bleeding out to passengers.<\/p>\n

Energy analyst Saul Kavonic warned the situation could deteriorate even further<\/a>, with petrol prices potentially climbing up to 40 per cent in the coming weeks.<\/p>\n

\u201cIf things go badly in the Middle East, we could see our worst oil shock since the 1970s,\u201d he said.<\/p>\n

\"PetrolPetrol prices tipped to surge up to 30c a litre as Middle East tension escalates Credit: SunriseWill the Australian government ease the pressure?<\/p>\n

There may be some room for government relief, however.<\/p>\n

The federal government previously cut excise during the beginning of the war in Ukraine.<\/p>\n

Bayliss said the cut would be \u201clow-hanging fruit\u201d for a government looking to ease pressure on household budgets.<\/p>\n

The current excise sits at around 51 cents, but the government has not confirmed if it is considering these measures.<\/p>\n

He said any intervention would depend on how long oil prices remain elevated and the duration of the conflict.<\/p>\n

The market turmoil follows a dramatic escalation in the region<\/a>, after the United States and Israel launched air strikes against Iran, killing Ayatollah Ali Khamenei and senior leaders in what has been described as a push for regime change.<\/p>\n

The strikes, dubbed Operation Epic Fury, have triggered retaliatory missile attacks, with Iranian projectiles hitting civilian targets in major cities including Dubai, Abu Dhabi and Doha.<\/p>\n

The disruption to global oil flows is now the central concern for markets. Any sustained blockage of the Strait of Hormuz will likely have immediate and dramatic consequences for fuel prices worldwide.<\/p>\n

<\/p>\n

Australian expat in Dubai details terrifying moment Iranian missiles struck the city<\/p>\n

2 min read<\/p>\n

<\/a><\/p>\n

UAE puts thousands of people in hotels for free as Iran launches retaliation strikes<\/p>\n

2 min read<\/p>\n

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