Fuel Excise Cuts on the Table as Oil Prices Reach 8-Year High

Fuel excise cuts are back on the table in Australia as oil prices surge past $100 a barrel following a major attack on a Saudi Arabian pipeline.

The East-West Pipeline, which bypasses the strategic Hormuz Strait, was shut down by Saudi Arabia after it was targeted by drones from Iran. Satellite images captured smoke rising from the damaged pipeline, and analysts warn that Saudi Arabia is running out of work-arounds to absorb disruptions to oil exports.

Oil prices have surged past $100 a barrel for the first time since 2014, and experts predict further disruptions could imperil global energy supplies. The Albanese government has hinted at re-introducing fuel excise cuts, with an NRMA spokesperson saying an open-minded approach is 'the best strategy'.

The average national price of unleaded petrol is currently around $2.11 to $2.12, while diesel sits at about $2.60, the highest in five months. If another fuel excise cut is introduced, motorists are warned against hoarding fuel, as it did not work out well for those who stockpiled during the last price drop.