As the war in Ukraine grows ever more ferocious, the economic repercussions are being felt ever more acutely at the bowser.
With the US and the UK banning the import of Russian oil, and members of the European Union pledging to wean themselves off it, the petrol price spikes have been startling.
And grey nomads are starting to ask ‘how high can it go?’
Remote communities in the Northern Territory are paying more than $3 per litre for diesel, as the cost of fuel continues to climb across the country.
The ABC reports that, in the Arnhem Land community of Ramingining, 580 kilometres east of Darwin, diesel is now selling for $3.29 per litre.
Driving into the petrol station is more nerve-wracking than usual these days.
The average price of diesel in the Northern Territory now sits at $2.16 per litre, 23 cents higher than in January, according to MyFuelNT.
The President of the NT Road Transport Association Michael Swart said he would not be surprised if $3 per litre for diesel was soon being paid in Australia’s major cities.
“It’s an absolutely scary thought for transport operators,” he told the ABC. “Supply is the biggest issue at the moment with Ukraine and Russia but, until we see a loosening of supply, we’re going to see the price continue to rise.”
Russian oil currently makes up around 7% of global supply.
Last week, the average petrol price around Australia last week was surging towards $2 … and the experts fear the only way is up from there.
For most grey nomads, fuel is one of the biggest – if not the biggest – costs of taking the Big Lap.
Already some travellers are looking very carefully at the trip they had planned.
Victorian grey nomad David Younger says he will certainly be doing a’ lot more free camping’ than he had originally planned.
Other long-term adventurers are looking at other ways they can trim expenses, whether it be on alcohol, meals out, or even tours.
After two years of Covid restrictions though, the overall mood remains largely philosophical.
“Of course, it’s disappointing to be slugged with this extra cost out of left fields,” said Mark David. “But it is what it is, and most grey nomads are fully appreciative of just how lucky they are … we just have to adapt and get on with it.”
East Arnhem Regional Council chief executive Dale Keehne said fuel prices were always higher in remote areas, but this latest price hike was record breaking and would have a “massive impact” on people’s way of life in the region.
He told the BAC that the ‘most direct and effective way’ of addressing soaring fuel prices in remote communities would be for the federal government to remove or reduce fuel excise.
“The tax for that is 44.2 cents a litre,” he said. “So, that’s a good chunk of the costs.”
However, Treasurer Josh Frydenberg has previously rejected such calls, saying that the money received from fuel excise goes directly into funding infrastructure projects.
You don’t see much infrastructure in the bush n remote areas and the fuel costs has always been high in those areas.
These high fuel costs will not only affect us travellers, the cost of getting essentials to remote locations will sky-rocket..
Economic sanctions against Russia are not hurting the Russians as much as they’re hurting the ordinary person.
As if it wasn’t enough that the government draconian overreach to SC2 destroyed jobs and the economy this latest pricehike will only benefit the big oil companies while sending many people already doing it tough even closer to the edge.
Whatever the cost to us of hurting Russias economy is small price to pay when compared to what the Ukrainians are suffering. Shameful to think otherwise
Yes, if this is a sacrifice the world has to make to show Putin how greedy and callous he is than so be it.
It wasn’t Putin who put up the price of fuel – The reality is that the increased cost of fuel is entirely related to the incessant greed of the fuel companies.
If anyone ought to make a sacrifice allow me to suggest that the big oil companies stop profiteering by making ordinary people pay an arm and leg while the cost of production hasn’t gone up and neither have wages.
Russia has the oil so obviously they are not be affected at the bowser so much. However, they would be suffering in other ways because of the loss of government revenue from fuel exports. However, Australians will also hurt in terms of the value of their vans and vehicles. Electric cars will probably get dearer too.
Russia has lots of oil so does Venezuela and Iran and Syria and quite a few more places.
The real problem however is that they’re all prevented from selling their resources because they don’t belong to that little big club, this creates an artificial scarcity which contributes to the increased cost to the consumer.
Agree that I also expect that the cost of electric vehicles will go up, I can see the charging stations and a slot where the users may insert their plastic cards , what I do not see are people who have simply added a couple of decent solar panels to the roof plus a suitable charge controller.
In Albany WA, $1.74 on 8/3/22 and 3 days later it was up to $2 02 @ the same outlet. Glad I filled up with 194 litres when I did.
Strange, I only heard this morning (March 11) the crude price dropped 12% overnight. Wonder why that isn’t reflected as quick as the rise was in the bowser price? Bit like banks & mortgage rates vs bank account interest rates.
Federal govt of any political persuasion will never investigate fuel prices while there is a GST attached to it.
It takes LONGER to reduce the cost of ITEMS!! 2 seconds to INCREASE ….. 3 weeks to reduce ?? Figure that out .. They tell us that this is because when tanks are topped up ( BULK) that fuel has to be paid for and that comes back to the bowser to recuperate ??? But , what about the FUEL still in the BULK tank before TOP UP ???? A NO WIN SITU !!!!!!!!!!!!
$1.93 diesel Atherton nq
Cairns Diesel price $2.21 on Thursday10/3 how come it can increase by 40 cents a litre in less than a week? It has nothing to do with Russia it is straight out price gouging by both the fuel companies and retailers.
Nailed it !!!
So why are we still selling our oil and gas of over seas
Coz we don’t make the decisions but that little club in Canberra who are really the submissives to the financail elite.
Queensland has the worst road in Australia.
Especially the Bruce highway
$2.61 today for diesel at Nullarbor Roadhouse.
Yes, I see that in the fuel check app, it’s the most expensive on the Nullarbor by far
300.9 at Hilcrest in Adelaide this afternoon for 91 unleaded
$2.44/litre for diesel today at Woy Woy NSW
I’m glad I’m not in Ukraine trying to buy fuel. Few places to go.
There is no justification for the sharp and immediate price rise, the fuel in Australia at the time of the announcement, the price rise is on all the fuel coming to Australia, the service stations have been ordered to put the price up and the charges go on the fuel that had already been paid for and in the tanks, the oil companies are gouging and the foreign owned Australian governments don’t care because of the tax we motorists pay for the higher price.
Watch what happens if the cost of oil comes down, we will be paying gouging prices for months even though the cost is less to the providers.
There is only 3 words that describe the rip off gouge pricing we see today. theft, theft, theft.
The sooner everyone in Australia wakes up the the lies being told about the gouging, the sooner we will all not buy fuel from any service station for 2 weeks at a time.
$2.04 for diesel in Wodonga.
I filled up with petrol for $2.17 per litre in NW Tas yesterday …… trip computer showed that by reducing my top speed from 110 kph to 90 kph I could reduce fuel consumption by 15 per cent – went from using 16 litres per 100 km to 13.5 litres per km towing camper trailer.
.whoops …… that should read 13 5 litres per 100 km
Remember 60 to 70% of petrol is tax. And some of the tax was only supposed to be short term. (remember the 3×3 tax? well that’s been going for much longer than the 3 years. Then there is the tax on a tax. howard’s GST taxing the tax we pay on petrol. Its time we stopped paying such high taxes for a commodity that is essential, unlike grog and smokes.
I know it’s 44c/L & GST but what other tax are we paying on fuel?
The price of fuel was inflating sharply as was inflation in general well before the invasion of Ukraine and we in Australia do not import any oil from Russia. Gotta cover ya ass somehow I suppose.
Nomads complain because they have to pay more to drive their $200k rigs to some of the most beautiful places in the world, while those poor people in Ukraine struggle with babies and a bag full of possessions to escape a madman’s bombs.
It’s not just nomads complaining, but ordinary everyday working people who are struggling to find the extra $$s to fill their tanks to go to work etc. Also not all nomads have $200k rigs, some have very basic rigs and are travelling on a tight budget. I think everybody has a right to complain over the price of fuel at the moment.
That too true Dianne..
This nomad musta missed that $200,000 boat for our van and 4×4, 90,000 for our tug n van and im not happy to pay that for fuel but hey I apparently have 110,000 left for fuel lol
Townsville NQ, I paid $1.81 at United 8/3/22 for diesel after a 4c discount. Prices today Sat 12/3/22 are between $2.05 & $$2.20 One wonders how so many new servos are being built if there is no money in it. It must be the coffee, pies, sausage rolls or grocery lines. Caravan travel will have to be cut by most. Bugger!
Difficult to fill up now, Diesel as of 12/03/22 $2.20 Brisbane. How can we afford this on the aged pension? my cost to fill up is over $200… We have cancelled our Van trip until this madness goes away..
Bet the Govt wont assist us any time soon.
I’d be interested to know why the price of fuel has skyrocketed so much & so quickly when Russia is only supplying 7% of the world’s oil.
It concerns me how QUICKLY the price increases and watch how very slowly it decreases when this is all over.
Paid $2.199/L at Crafters Sth Australia on 11/3/22
This is crap Russian fuel only makes 11% of our fuel I am lead to believe. So how can it make such a difference.
An we have our own fuel in Australia which is sent overseas to refine and then comes back here for us to use. This is just another government scheme wake up Australia and get rid of the major party controlling us,
Christopher The oil that Australia produces is extremely high in sulfur and is not suitable for
fuel, however the sulfur content makes it prized as a lubricant, therefor Australia “exchanges” that oil for refinable crude oil.
Where is the water shed? In some remote areas fuel is dearer than in capital cities, but in QLd (probably elsewhere), several hundred klms from Brisbane, one can buy fuel for up to 10 cents/ litre CHEAPER than in the capital city. Sure the land that servos sit on is dearer in Brisbane, but the through put is much higher too. Residents in capital cities are being screwed by the fuel industry.
Just came across the Nullarbor from WA to SA. Nullarbor Road House on 12 March 2021 was 2.61 per litre whereas Stations either side of it were 30 cents or more cheaper! Eucla 2.29 and Nundroo 2.25 Like others waiting for the price drop announced on the news to reach the pumps! Was also 1.81 per litre more than it was in Perth 3 days prior!
correction ..price in Perth was 1.81 per litre 3 days prior.. apologies !
Frederick, I understand that a couple of the servos across the Nullarbor are owned by the same person, thus the sometimes extreme price difference.
How much oil does Australia buy from Russia? Did this affect the prices so quickly? All the service stations prices going up together.
I think it’s more of the oil companies going for a quick buck.