Middle East Tensions Spark Christmas Fuel Price Warning

Rising tensions in the Middle East and escalating oil prices are set to make Christmas expensive for Australian motorists. The price of Brent Crude oil jumped above $US102 ($A147) a barrel after reports emerged that the US would send a third aircraft carrier to the region.

The move is expected to have an impact on fuel prices in Australia, with NatRoad chief executive Warren Clark warning that higher freight costs will find their way onto the price tag for groceries and presents. 'Christmas is expensive already, but higher freight costs will make it even more expensive,' he said.

Australia still has a strong pipeline of oil coming in, with Energy Minister Chris Bowen saying there are 41 days' worth of petrol supplies, 32 days' worth of diesel, and 30 days' worth of jet fuel. However, prices could surge if the conflict escalates further.