Fuel prices in remote areas of the Northern Territory are approaching $4 per litre, and residents are concerned about paying more as war in the Middle East restricts global oil supplies.
Communities in Arnhem Land, such as Ramingining, 580 kilometres east of Darwin, are paying $3.99 per litre for diesel, while in Milingimbi the price is $3.95 per litre.
The seven-day average for the entire NT was $2.35 per litre and Darwin was $1.81 per litre, according to MyFuel NT.
East Arnhem Regional Council chief executive Dale Keehne said prices were usually higher in remote areas, but conflict in the Middle East had left him concerned about further increases.
“We’ve had a few surges over the years; this is particularly high and obviously very serious,” he said.
Some analysts have suggested Australian motorists take advantage of fuel prices before a likely steep rise in prices. (ABC News: Erin Parke)
Mr Keehne said a lot of Indigenous communities relied on diesel generators for electricity, and some people would be forced to choose between buying fuel and other essentials such as food.
“It could have an impact on food security effectively, because people don’t have that much money in the first place,” he said.
The council supplies fuel to the community of Gapuwiyak, where diesel costs $3.28 per litre, and Mr Keehne said a federal subsidy was the best way to keep prices down.
Aviation fuel costly
In Maningrida, another remote community in Arnhem Land, Indigenous rangers are paying up to $5 per litre for aviation fuel, known as Avgas.
Djelk ranger manager Jason Koh said Avgas was used to fuel helicopters that were vital for transporting supplies through the region and any price increase was of concern.
“We’ll take it as it comes, there’s no other options really. It definitely affects every angle of work for the rangers,” he said.
“We definitely feel the flow on effect of what’s happening in the rest of the world, it’s a small world these days.”
This bowser is selling aviation fuel in Maningrida, which is vital for helicopter transport during the wet season. (Supplied: Jason Koh)
Mr Koh said pre-existing government grants were a vital source of funding, which meant the budget was inflexible, and an increase in operational costs would stretch their resources very thin.
“The grants aren’t even meeting our wages, so we’re kind of running on the red line at the moment,” he said.
The ABC understands the price of Avgas in Darwin is about $2.70 per litre.
Motorists already feeling ripped off
Fuel prices have increased significantly in the NT this week, with some reports of diesel jumping 15 to 20 cents per litre.
The ABC Country Hour program was inundated with texts from frustrated motorists, unhappy with the sudden rise.
“Overnight it’s gone up more than 10 cents [per litre] to $1.99 per litre, which I reckon is straight out price gouging,” said Barry.
“Yesterday was $1.71 per litre and it’s now $1.85 in Katherine! Price gouging, as there hasn’t been a new fuel drop since the rise in oil prices,” said Shaun.
“Absolutely criminal what these fuel companies are doing. Surely this will put more pressure on inflation. Complete rip-off,” said Rob in Humpty Doo.
“The fuel price going up has huge repercussions for boating, camping and our tourism. Basically, it’s taking away our lifestyle,” said Sprinkles.
“At Parap, diesel is now $1.99 per litre, last week $1.79 per litre,” said Ross.
AMP chief economist Shane Oliver told ABC News that motorists should keep an eye out for price gouging because petrol prices should not have risen sharply yet.
“The normal relationship [means] the petrol you’re buying at the pump at present was purchased seven to 10 days ago, so it should not reflect these higher [oil] prices,” he said.
“Over time, it will start to reflect the high prices, then it starts to flow through.”
Federal Treasurer Jim Chalmers said he has written to ask the ACCC “to help ensure fuel retailers don’t use events in the Middle East to price gouge Australians”.