Australia may face a fuel supply crunch in the coming weeks due to Middle East conflict-driven price hikes and reliance on imports, local media reported. The country has only two operating refineries, with over 80% of petrol, diesel, and jet fuel imported from Asia, much of it refined from Middle Eastern crude shipped through the Strait of Hormuz.
Reports noted severe global supply disruption, with shipping insurance delays likely to worsen economic impacts even if the Strait reopens. Rising energy costs have already affected Australian manufacturers and logistics firms, with DHL citing diesel price increases of 30–50% and shifting its fuel surcharge review cycle to weekly.
The Australian also reported that soaring oil and gas prices could raise household expenses. Reserve Bank Governor Michele Bullock said higher fuel costs were beginning to influence inflation expectations