Ampol Warns of Fuel Price Surges Amid Middle East Conflict

Australian motorists face a likely increase in petrol and diesel prices driven by escalating conflict in the Middle East and the imminent expiration of federal tax relief. Ampol, Australia's largest fuel retailer, warned that disruptions have expanded from the Strait of Hormuz to the Bab el-Mandeb strait, increasing crude oil costs and refined fuel margins.

This market volatility coincides with an August 2 deadline for the end of the Albanese government's 16-cent-a-litre fuel excise reduction. While Iran-backed Houthi militias have targeted Saudi oil tankers in the Red Sea with missiles and drones, the Australian government and major importers, including Ampol and Viva Energy, report that domestic supplies remain stable.

To mitigate potential shortages, importers are utilizing a federal underwriting scheme to purchase additional fuel from global spot markets. The Government of Saudi Arabia has also worked to bypass the Strait of Hormuz by diverting crude oil through overland pipelines to the Red Sea.