Australian motorists absorb $10.5 billion fuel cost surge linked to US-Iran conflict
Research shows Australian drivers have paid an extra $10.5 bn for petrol and diesel since the US-Iran war began, a burden six times the global average.
Since the outbreak of hostilities between the United States and Iran, Australian motorists have incurred an additional $10.5 billion in fuel expenses, according to a study by the Centre for Research on Energy and Clean Air. The per-person increase of $550 is roughly six times higher than the global average increase of $85. The analysis attributes the outsized impact to Australia’s high per-capita oil consumption and reliance on private cars, which amplify exposure to international price shocks.
CREA co-founder Lauri Myllyvirta argued that cutting oil demand, rather than expanding domestic production, offers the most effective protection. Secure Energy Project chief executive Leila Aly said the price surge worsens the ongoing cost-of-living crisis for families dependent on their vehicles. Recent Brent Crude prices hovered around $115 per barrel, with Sydney’s unleaded pump price at 236 cents per litre and diesel at 280.4 cents per litre.
Why it matters
Rising fuel costs strain Australian households and highlight the vulnerability of car-dependent societies to global oil price shocks.
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