SYDNEY — Australian motorists are paying an average of AUD 2.03 per litre for unleaded petrol as of mid-April 2026, with global Brent crude oil prices hovering near US$95 per barrel after sharp swings triggered by Middle East tensions and a fragile ceasefire, leaving households and businesses bracing for sustained fuel cost pressures.

The latest data from GlobalPetrolPrices.com, updated April 13, shows unleaded gasoline at AUD 2.03 per litre, equivalent to about USD 1.45 per litre. Diesel stands higher at AUD 2.76 per litre or roughly USD 1.97 per litre. These figures reflect a partial easing from peaks earlier in the month, when spot crude cargoes for Asian refineries supplying Australia surged above US$140 per barrel amid disruptions in the Strait of Hormuz.

Brent crude, the global benchmark most relevant to Australian imports, traded around US$94.60 to US$95 per barrel on April 16, down slightly in early Asian trading but still elevated compared with pre-crisis levels. West Texas Intermediate futures sat near US$91 to US$98 per barrel in recent sessions, with WTI occasionally trading above Brent due to regional demand dynamics. The volatility stems from a month-long disruption in one of the world's most critical oil chokepoints, which carries about one-fifth of global supply.

The Australian Institute of Petroleum's weekly reports and charts from mid-April confirm the linkage between international benchmarks — including Tapis crude, Singapore Mogas 95 petrol and gasoil diesel prices — and local pump prices. Singapore wholesale petrol and diesel costs remain elevated, though government intervention has softened the blow at the bowser.

In late March, the federal government halved the fuel excise duty to 26.3 cents per litre for three months and coordinated with states and territories to forgo GST revenue, delivering an additional effective cut of about 5.7 cents per litre. Combined with a temporary zeroing of the heavy vehicle road user charge, these measures provided roughly 32 cents per litre in relief for many drivers. The Australian Competition and Consumer Commission has monitored pass-through rates, noting that most retailers passed on the excise reduction promptly in early April.

Despite the relief, average unleaded prices across capital cities fluctuated. Recent snapshots showed Sydney, Melbourne and Brisbane motorists facing figures around AUD 2.10 to AUD 2.30 per litre at many stations, with cheaper options dipping below AUD 2.00 in competitive suburbs when monitored via apps and trackers. Diesel prices proved stickier, often exceeding AUD 2.70 to AUD 3.00 per litre in some regions, hitting new highs in places like Canberra before modest pullbacks.

The price trajectory reflects a turbulent global backdrop. Oil futures spiked above US$100 and even approached US$110 per barrel in early April following escalations involving the US, Israel and Iran, which threatened shipping through the Strait of Hormuz. A two-week ceasefire announced in recent days triggered a sharp drop of around 13 percent in one week, with Brent falling from peaks near US$109 to the mid-US$90s range. However, uncertainty lingers over the ceasefire's durability, keeping a risk premium in the market and preventing a full retreat to pre-crisis levels.

Asian refineries, which supply the bulk of Australia's petrol and diesel, paid spot prices as high as US$140 per barrel for immediate cargoes in mid-April, far above longer-dated futures contracts around US$100. This spot-futures gap signals tight near-term supply and has delayed the full benefit of any crude price declines reaching Australian service stations. Shipping and freight costs also rose amid rerouting and insurance hikes, adding further upward pressure.

Economists warn that fuel-related inflation could persist for at least six months. AMP deputy chief economist Diana Mousina noted that households filling 35 litres weekly saw costs jump from about AUD 60 to AUD 88 in March, with partial relief in April potentially trimming that back to around AUD 78 if no further spikes occur. Broader economic ripple effects include higher transport and logistics expenses feeding into grocery and goods prices.

The government has drawn down strategic fuel reserves, releasing hundreds of millions of litres of petrol and diesel to bolster supply. Foreign Minister Penny Wong indicated that cheaper prices at the pump may take time to materialise even if global crude eases, due to the lag in refining, shipping and distribution.

Domestically, Australia remains heavily reliant on imports despite having untapped resources. Calls have grown to fast-track development of fields such as the Taroom Trough in Queensland's Bowen Basin, estimated to hold significant reserves that could meet up to a quarter of national needs. Environmental regulations and commercial challenges have slowed progress, prompting state and federal discussions on balancing energy security with sustainability.

The Australian dollar's movements also influence local prices. Trading around US$0.69 to US$0.71 in recent sessions, a weaker AUD amplifies the cost of importing oil priced in US dollars. The Reserve Bank of Australia and Treasury have modelled scenarios for prices exceeding US$120 per barrel, though current levels sit below that threshold.

Market analysts offer mixed outlooks. Goldman Sachs trimmed its second-quarter 2026 Brent forecast to US$90 per barrel following the ceasefire news, while ANZ expects Brent to trade above US$90 for much of the year before settling near US$88 by year-end, citing ongoing Middle East supply risks. Longer-term projections point to gradual normalisation if geopolitical tensions subside, but persistent volatility could keep prices elevated into 2027.

For Australian drivers, daily tactics matter. Fuel comparison apps and websites show station-by-station variations of 15 to 30 cents per litre within suburbs. Filling up mid-week or at independent retailers often yields savings, while loyalty programs and supermarket discounts can further reduce costs. Truck operators and farmers, hit harder by diesel prices, have benefited more directly from the heavy vehicle charge relief.

The situation has sparked broader debate on energy policy. Opposition figures and some industry groups argue for reduced regulatory burdens to boost domestic production, while environmental advocates stress the need for a faster transition to renewables and electric vehicles to lessen oil dependence. The delayed release of the government's quarterly resources and energy outlook — postponed to June due to "extreme volatility" — underscores the challenges in forecasting amid uncertainty.

As of April 16, the Australian Institute of Petroleum continues publishing international market watches tracking Brent, Tapis and Singapore product prices, providing transparency for wholesalers and retailers. Weekly petrol and diesel price reports for the period ending April 12 offered granular city and regional data, showing modest weekly declines in some unleaded averages but resilience in diesel.

Consumers and businesses alike monitor developments closely. A resumption of full Hormuz disruptions or renewed conflict could push prices higher again, while a durable peace and increased OPEC+ output might accelerate relief. In the interim, the combination of global benchmarks, government relief measures and local competition will dictate what Australians pay at the pump.

The current environment highlights Australia's vulnerability as a net fuel importer. With oil accounting for a significant portion of the transport sector's costs, sustained high prices risk slowing economic activity, particularly in logistics-dependent industries. Yet the excise cuts and reserve releases demonstrate policy agility in cushioning households during the crisis.

Looking ahead, experts advise budgeting for elevated costs through at least the northern hemisphere summer. Motorists can mitigate impacts by maintaining efficient driving habits, servicing vehicles regularly and exploring public transport or carpooling where feasible. For the wider economy, the episode may accelerate discussions on strategic reserves, diversification of supply sources and investment in alternative fuels.

On this Thursday in April 2026, with Brent crude near US$95 and local unleaded averaging AUD 2.03 per litre, Australian drivers face a fuel landscape shaped by distant geopolitics yet felt acutely at every service station. The coming weeks will test whether the recent easing in global oil markets translates into meaningful relief or if lingering uncertainties keep prices stubbornly high.

© International Business Times