Australian petrol rises above $2.40 a litre amid Middle East supply fears

Australia’s average price for regular petrol rose by 3 cents in a week to nearly $2.41 a litre, its highest level in more than six months.

Diesel fell by 1 cent to $2.83 a litre, but remained near levels last seen early in the Iran war.

Attacks on oil tankers near the Strait of Hormuz and renewed fighting in the Red Sea have raised fears about fuel shipments from the Middle East.

Those concerns grew after deadly attacks on Riyadh’s main airport, and the global Brent oil price climbed as high as US$105 a barrel.

A release of 100 million barrels from Group of Seven countries’ reserves may have helped ease regional diesel prices, but its effect on Asian markets is not yet clear.

Australia’s energy minister said the country had 43 days of petrol and 31 days of diesel in reserves, with more fuel tankers due in the coming weeks.

The outlook for prices will depend partly on how the regional conflict and fuel supplies develop.