As fuel prices surge, grey nomads are once again having to do their sums

Published: September 18, 2026

Grey nomads who thought they had seen the worst of the high fuel prices triggered by the conflict in the Middle East are certainly being forced to think again.

When the war between the US and Iran started way back at the very end of February, there were plenty of doom-mongers who predicted massive and long-lasting petrol cost hikes and even fuel shortages.

Some travellers even chose to postpone or cancel trips into regional areas fearing both the potential cost, the possibility of being stranded without fuel, and a desire not to take diesel from farmers who they rationalised might need it more than they did.

It all prompted tourism authorities and businesses in rural areas to urge grey nomads not to change their travel plans, and to reassure them that all was well.

As the Government sought to secure supplies from sources other than the Middle East, implemented a fuel subsidy, and a number of ceasefires were declared – albeit with varying degrees of success – it seems everyone’s worst fears would not materialise.

Fuel prices came down and stabilised, and – although the number of ships carrying oil through the Strait of Hormuz never got anywhere near pre-war levels, there was a sense that things – at least as far as fuel supplies were concerned – were back to  normal.

However, that is certainly no longer the case.

The Government fuel subsidies have come to an end, and peace in the Middle East seems a long way off. Indeed, as well as ongoing issues in the Strait of Hormuz shipping channel, disruptions have spread to pipeline infrastructure in Saudi Arabia and the Bab al-Mandab Strait.

Oil prices are now back over US$100 a barrel and Australian motorists are feeling the pain at the bowser.

Diesel, in particular, has shot up in price in recent days and weeks.

The Courier Mail reports that Aussie motorists could soon be shelling out more than $2.60 a litre at the bowser.

It said unleaded petrol soared to a national average of $2.30 a litre on Wednesday, while diesel climbed to $2.78.

In April, when the shock from the start of Iran War was fresh, unleaded topped out at $2.59 a litre, while diesel hit $3.27.

NRMA spokesman Peter Khoury told the paper there was a serious possibility that prices could soon blow past those highs.

“It’s the Middle East,” he said. “Every time we hope that there’s a de-escalation, our hearts are shattered. Anything is possible.”

At this stage though, the Government says it is not considering a second cut to the fuel excise.

And that means, of course, that grey nomads are once again having to re-do their sums and plan for the possibility of the situation deteriorating.

Most though report that they have encountered no issues to date.

Long-term traveller, Michelle, wrote that she was upset at the scaremongering surrounding fuel prices, and that she hadn’t come across any fuel stations that had run dry on a recent major trip.

“We have just returned after 11,000 kilometres and 12 weeks travel,” she said. “When we left, fuel in Alice Springs was cheaper than at home on the Mornington Peninsula … now we find it is dearer here than in the country places we filled up in SA, WA and Victoria!”

  • How much did you pay for fuel last time you filled up? Has the current spike in fuel prices made you consider changing your travel plans? Comment below.

Are you a Grey Nomad member yet? Click here to find out about the discounts, competitions and other benefits on offer.


6 Comments
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Gavin
2 hours ago

Complaining about fuel prices won’t lower them. Adapt or stay at home.

Ray Archibald
1 hour ago

Paying $2-70 a litre for diesel and as we are away from home no option but to pay, we haven’t seen any fuel stations with no fuel but why is there such a difference in prices with diesel from garage to garage

John S
1 hour ago

Why are we in Australia paying $2.50+ per liter when the equivalent price in USA is around $1 per liter ???

Tony west
1 hour ago

It’s sad but no matter happens the war will be blamed on cost of living the cost of the fuel. Interest rates going up. Instead of seeing it’s all going on here not overseas they use the war for everything.

Garry Tisdale
1 hour ago

Why are us diesel drivers subsidising drivers of unleaded vehicles. We all know diesel is cheaper to produce, probably 50% less than unleaded. It’s a bloody joke.

Garth
1 hour ago

Diesel already $2.70+ around Ballarat. Instant rises.

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