Middle East Pipeline Disrupted, Australian Motorists Face Another Fuel Price Shock
Australian motorists could be facing another fuel price shock due to recent attacks on major energy infrastructure in the Middle East, which have disrupted oil supplies and pushed prices above $US100 a barrel.
The critical pipeline across the Arabian Peninsula was forced offline after drone strikes by Yemen-based Houthi militants, prompting Saudi Arabia to shut down its 1200-kilometre crude pipeline it had been using to bypass the Strait of Hormuz.
Australian fuel importers are concerned about a sustained disruption to Saudi oil flows, which could have disastrous consequences for global markets and Australian consumers.
The national average price of regular unleaded was $2.16 a litre on Monday, up 39 per cent since July, while the average diesel price has risen even more sharply, up 48 per cent from $1.79 to $2.65 a litre.