The average Australian price of unleaded petrol jumped 32% from February to March in the early stages of the US-Iran War.
Petrol prices hit around $2.50 at their highest point. Prices have since fallen, but with fuel excise cut dropping from 32 cents to 16 cents, prices are rising again.
The average retail petrol price at 162.9 cents per litre in the first week of July. Track fuel pricing and trends with our live tracker.
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Why are petrol prices rising?
Australian petrol prices have risen sharply in the last few weeks, with petrol as high as $2.50.
The main driver of rising fuel prices is the US-Israel war with Iran. This conflict has quickly escalated to involve attacks on oil fields and gas plants across the Persian Gulf.
Iran now effectively controls the Strait of Hormuz, a key shipping lane that handles around 20% of the world's oil.
This supply shock, and the rising insurance costs associated with the war, have caused the price of Brent crude oil to soar to over. Oil, which had hovered around $60 a barrel before the war, has jumped to over $100 a barrel, and is still hovering around that mark.
How much are Australians paying for fuel?
According to data from FuelWatch, the average price for unleaded petrol per litre nationwide was $1.69 in February 2026. In March, that average was $2.24 per litre.
If you're refuelling a medium-sized SUV with a 65 litre tank at those prices, you'd pay:
$109.85 in February
$145.6 in March
That's just over $35 more, a 32% price increase in 1 month.
If you refilled a 65-litre tank twice a month, that's an extra $840 a year.
How are Australians reacting to higher fuel prices?
Australia has been dealing with a years-long cost of living crisis well before the US-Israel War in Iran. Inflation has been high for years, and there was an energy price spike in 2022 after the Russian invasion of Ukraine.
Households are already reporting higher stress. Almost twice as many Aussies in March rated petrol in their top 3 most stressful expenses.
And that's from surveys before the current price shock. 41% of Australians also say they have less than $1,000 in savings.
Embracing electric vehicles
Australians have already embraced electric cars. Higher petrol prices may push even more Australians towards EVs.
Even in February, before the war in Iran began, electric vehicles accounted for 30% of all vehicle sales in Australia, up from just 24% in April 2025.
And those drivers are certainly laughing now. Data suggests an electric vehicle could save you almost $3,000 annually in fuel costs. And if oil prices continue to rise, you could save even more.
How can Australians save on petrol costs?
Unless you happen to be president of the United States, there's not a lot you can do as an individual to affect the global oil supply.
But the savvy petrol shopper can find lower prices and lock in better deals in a few ways:
Monitor prices via apps. In NSW you can use FuelCheck to track petrol prices. In Queensland there's RACQ Fair Fuel. Even just a quick Google search reveals prices in your area. You can set up alerts for price drops too.
Get discounts. If you fill up at EG Ampol and shop at Woolworths you can save 4 cents per litre of fuel for every $30 you spend at the supermarket. You can also redeem 2,000 Everyday Rewards Points for $10 off at Ampol. You can get a similar discount at Shell Reddy Express with a Coles docket.
Use apps. The My 7-Eleven app lets you lock in the best local fuel price in your area. You can also earn Velocity Points on your fuel. You can earn points when you fill up at a CaltexGO station with the CaltexGO app.
Change the way you drive. If you're hard on the brakes and accelerator and drive around with a boot loaded up with heavy stuff, you're using more petrol. Lighten up and slow down.
Use cheaper fuel. E10 is fine for a lot of cars. Do your own research carefully, but consider using this cheaper option if you can.
Ditch the car if you can. Walking, cycling or taking public transport means less need for petrol. For some people this is not possible or a massive inconvenience. But if you have alternative options now is a great time to explore them.
Aside from supply issues causing major financial stress for drivers, several insurance experts, including major insurer NRMA, have warned Aussies of the danger of stockpiling fuel at home.
Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University.
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Joshua Godfrey is a Senior Insights Analyst at Finder, specialising in data analysis and identifying emerging trends through the Consumer Sentiment Tracker, a monthly survey on Australians' financial attitudes. He has authored Finder’s 2024 Wealth Building Report and 2025 First Home Buyer Report which have been widely quoted in top media outlets like the AFR and news.com.au. With a Bachelor of Business in Finance and Marketing and a Diploma of Creative Intelligence from UTS, Josh is passionate about uncovering patterns in consumer sentiment and exploring how they influence the future of finance.
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