How high could petrol prices rise? Eight ways to stretch your tank

Fuel prices across Australia have surged as the escalating war in the Middle East rattles global energy markets, prompting warnings about economic fallout and sparking long queues at petrol stations as motorists rush to fill up.

Figures from fuel comparison app Petrol Spy show average unleaded prices last week climbed above 210 cents per litre in several major cities, including Darwin, Brisbane and Sydney.

Energy Minister Chris Bowen said the government was monitoring supply closely and urged Australians not to panic buy despite rising prices and global uncertainty.

“There’s absolutely no reason for panic anything. Panicking, full stop, panic buying, panic anything,” he said on Monday, assuring that Australia currently hold significant domestic fuel reserves, including three billion litres of diesel and one and a half billion litres of petrol.

But Nationals leader David Littleproud has warned the disruption was already being felt in regional areas, where farmers rely heavily on diesel to harvest crops and transport produce.

“What that means is that literally our farmers have nothing left in the tanks on their properties, which means they can’t run their tractors, they can’t go and produce your food,” he said.

“If you don’t have fuel to put into their harvester, you don’t get the crop off: it rots.”

Markets brace for oil shock

The escalating conflict has shaken global financial markets, as investors weigh the economic consequences of rising oil prices and prolonged instability in the region.

Executive director and co-founder of EnviroInvest, Elio D’Amato, said traders were increasingly apprehensive about the economic consequences of a prolonged disruption to global energy supply.

“I think we are getting a bit of panic selling,” he said.

Brent crude prices have surged past US$100 a barrel, with some forecasts suggesting they could climb significantly higher if tensions continue to escalate.

“If oil prices were elevated for significantly a long time, that could lead to a recession,” D’Amato told SBS News.

Markets were particularly sensitive to developments in the United States economy, he added, which often sets the tone for global financial conditions.

“When they sneeze, we catch cold,” he said.

“But you shoot first and ask questions later when it comes to this market, and I think we’re seeing that in oil markets at the moment.”

Last week, some economists said Australians could be paying $1 a litre more for petrol if a key oil shipping route near Iran remains closed for up to three months.

Eight ways to make your fuel go further

While prices remain volatile, experts say motorists can reduce fuel use and stretch their tank further by adjusting how they drive and manage their vehicles.

1. Carry less weight in the car: Motorists should remove unnecessary items from their vehicles to improve fuel efficiency, according to NRMA spokesperson Peter Khoury. “Don’t carry unnecessary weight in the boot, so get the golf clubs out,” he said, noting the heavier a vehicle is, the more fuel it consumes.
2. Maintain correct tyre pressure: Properly inflated tyres help reduce resistance and improve fuel economy, Khoury said. “Make sure your tyres have the right pressure in them, because if they don’t … that is also a drag on fuel consumption.”
3. Use the fuel recommended for your vehicle: Drivers should follow their manufacturer’s guidance rather than automatically choosing higher-octane petrol. “Please don’t pay for expensive fuel if you don’t need it,” Khoury said, noting many cars can run on cheaper blends such as E10 if the manufacturer allows it.
4. Use windows strategically: Ventilation choices can also affect fuel use depending on speed. “If you’re driving around the city and it’s hot, put the windows down,” Khoury said. However, on highways or country roads drivers should close the windows and use air conditioning instead to minimise drag.
5. Avoid aggressive acceleration and braking: Smooth driving habits can also help conserve petrol, Khoury said. Drivers should “drive normally; don’t try and speed off the lights” and avoid a “lead foot”, as unnecessary strain on the vehicle increases fuel consumption.
6. Anticipate stops: Allowing a vehicle to slow naturally rather than braking late can help conserve fuel, according to Macquarie University senior lecturer in mechanical engineering Sammy Diasinos. Drivers should look ahead and anticipate when they will need to slow down so the car can instead “roll to a stop”, he said.
7. Maintain a steady speed with cruise control: Holding a consistent speed can improve fuel efficiency, said Associate Professor Rey Chin from the University of Adelaide. Cruise control can help optimise fuel input because “your leg is not going to provide the optimum fuel input compared to a computerized system,” he said.
8. Compare fuel prices before filling up: Motorists can also reduce costs by checking petrol prices across nearby service stations, Chin said. “If you know that you can travel another kilometre or two down the road to get cheaper fuel, it’s definitely worth it.”

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