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.
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:
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.
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.
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.
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:
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Finder is providing fuel relief for four lucky winners. Follow Finder on Instagram and enter the draw for a chance to win a share of $1,000 in fuel vouchers.
