CANBERRA: Australian motorists are facing renewed pressure at the pump as global oil markets react to the Middle East conflict and domestic regulators step up scrutiny of retail pricing. The Australian Institute of Petroleum’s weekly report for the week ending March 1 put the national average retail price for unleaded petrol at 181.0 Australian cents per litre, up from 171.0 cents a week earlier. Long queues were reported at some service stations as prices moved higher.
Across major cities, motoring groups and consumer advocates have criticised sharp movements in retail prices, while state leaders urged calm. In South East Queensland, more than 210 service stations lifted prices to 219.9 cents per litre within 24 hours, according to figures cited by the state’s peak motoring body. In Sydney, Melbourne and Brisbane, some stations were reported above A$2 per litre, with city price cycles already near their highs.
In Western Australia, drivers queued in Perth on the city’s traditionally cheaper day in the weekly fuel cycle as prices climbed. ABC News reported many stations were selling petrol well above A$2 per litre on March 2, compared with a daily average of 188.7 cents and a February average of 164.5 cents per litre. The same reports included warnings from economists that prices could rise further as higher international costs flow through existing supply chains.
Remote costs hit households
In remote parts of the Northern Territory, pump prices were far higher. ABC News reported diesel at A$3.99 per litre in Ramingining and A$3.95 per litre in Milingimbi, with the seven-day average across the Northern Territory at A$2.35 per litre and Darwin at A$1.81 per litre, based on MyFuel NT. The report said some communities rely on diesel generators for electricity, and Indigenous ranger groups in Maningrida were paying up to A$5 per litre for aviation fuel used for helicopter operations.
The Australian Competition and Consumer Commission said on March 6 it was examining international and domestic fuel price movements and market behaviour as oil prices responded to events in the Middle East. Commissioner Anna Brakey warned that false or misleading statements to consumers about reasons for price increases could breach Australian Consumer Law, and said the regulator had written to major fuel companies outlining expectations for domestic fuel pricing. The ACCC said it monitors retail prices in capital cities and in more than 190 regional locations.
The ACCC said the international price of refined petrol is a key driver of Australian retail petrol prices, and it pointed to Singapore Mogas 95 as the relevant international benchmark for petrol in Australia. The AIP report for the week ending March 1 placed the national average wholesale price for unleaded petrol at 154.4 cents per litre alongside the 181.0-cent national retail average, and said changes in international prices typically move through to Australian wholesale prices with a lag of about one to two weeks. Fuel excise is 51.6 cents per litre, with GST also applied at the bowser.
EV market grows as standards tighten
Alongside fuel-market scrutiny, the ACCC highlighted strong recent growth in electric vehicle sales. It said almost 17 per cent of all new vehicle sales in December 2025 were new electric vehicles, the highest monthly electric-vehicle market share recorded in Australia. The ACCC said electric vehicle sales rose 38 per cent in calendar year 2025 compared with 2024 and accounted for just over 13 per cent of all new vehicle sales for the year. The regulator said it continues to track fuel pricing and margins as part of its monitoring role.
The surge in petrol and diesel prices comes as Australia’s New Vehicle Efficiency Standard applies to new cars supplied from January 1, 2025, with the first reporting period beginning on July 1, 2025 under government guidance. The ACCC said it will take action where conduct contravenes competition and consumer laws, and it reiterated advice for motorists to compare prices using fuel apps and websites as volatility continues. – By Content Syndication Services.