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.


41 Comments
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Gavin
21 days ago

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

PaMa
21 days ago
Reply to  Gavin

That’s sounds like fuel price is no problem for you. Some of us don’t have unlimited funds !!

Greg
20 days ago
Reply to  PaMa

So true. Mr & Mrs average who have retired don’t have unlimited funds and the additional costs certainly hamper our retirement and make it much more difficult.

bill
20 days ago
Reply to  Gavin

great reply Gavin.People will have work out how much it will cost trips + percentage 20pc over

Ray Archibald
21 days 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
21 days ago

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

Rob
21 days ago
Reply to  John S

Tax, Tax & Tax

Daniel
20 days ago
Reply to  John S

In Australia we use litres. Not liters. And the fuel price in the US the fuel price just went over $6 a gallon, about $1.60 a litre.

Kev
19 days ago
Reply to  Daniel

US Gallon not Imperial Gallon!

Vic
19 days ago
Reply to  John S

$1/litre is long gone, even in the US.
Latest price of diesel in USA averages around $6.50 USD/gallon (3.78 litres) = $1.72 USD/litre = $2.40 AUD/litre. A little cheaper than here, but not much ~ 10%.

Tony west
21 days 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.

Ruth
19 days ago
Reply to  Tony west

That is exactly correct, our righteous treasurer forgets people were long suffering from the high cost of living well before the Ukraine and Russian war and the Israeli and Iran war. Yet he keeps using the war for his failures.

Garry Tisdale
21 days 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.

Peter
20 days ago
Reply to  Garry Tisdale

It is complicated but Diesel is not cheaper to produce. It is also from the part of the Refining process that also makes jet fuel and heating oil hence there is competition for it. Petrol on the other hand is the only product from that portion of the crude oil.The real question is why when the last time oil hit these prices fuel only went to $2….The refiners have increased their margins considerably. There should be a royal commission in fuel prices because this whole concept of weekly price cycle is ludicrous

Garth
21 days ago

Diesel already $2.70+ around Ballarat. Instant rises.

John Bell
20 days ago
Reply to  Garth

Check it now on the 18/9/26 it’s over $3 a lt

Louise Urquhart
19 days ago
Reply to  Garth

DIESEL UP TO $3
09 TODAY IN Bargara

Craig
21 days ago

ABC news today stated it is not necessarily a supply problem but a cost problem.
Plenty of diesel around but refineries currently are making a profit of $69 per barrel where it was $24 per barrel.
The question is why did governments in Australia allow oil refineries to close up shop and force us to have to import refined fuel instead of importing plain fuel oil and refining it here so WE have some control over refining prices per barrel.
Who dropped the ball and what is the current government doing about it? Right NOW

PaMa
21 days ago
Reply to  Craig

Government has done it with all our manufacturing sectors.

Peter
20 days ago
Reply to  PaMa

Little to do with the govt as it is just capitalism at work. Businesses want cheap workers which is how we get cheap products. What we have done is import cheap products by allowing overseas workers to be exploited and the environment to e ignored

Southerly Dolling
19 days ago
Reply to  Peter

Good points

Pete
20 days ago
Reply to  Craig

Totally agree,
While politicians feather their nests with pensions and connections for a cosy life with lobbyists employers, our manufacturing has left our shores, our food producers are turning their crops into the ground, all with no infrastructure left.
Join the global market they said, now we pay the price of not protecting ourselves first and foremost.

Peter
20 days ago
Reply to  Craig

Closing the refineries is capitalism at work just like sending jobs overseas.

bill
20 days ago
Reply to  Craig

Good reply goverment all at sea

Rick from Weelabarrabak
5 days ago
Reply to  Craig

Australia has an abundance of “sour” crude oil, that’s the stuff that diesel is refined from and has a high sulfur content. Petrol is refined from “sweet” crude that we have to import.

Jay
21 days ago

It’s not the war, it’s greed…how about uncapped our own off shore wells???

James
21 days ago

I never look at price it’s what it is you have to have it, walk or practice getting the kids to push the car around, I drive a vehicle that uses 50l/100 I just do shorter distance in a day and spread the travelling over longer stays, still costs the same. Helps when your retired

Col
21 days ago

Diesel $3.45 at Yulara yet $2.66 in Alice Springs.

Anthony
21 days ago

Never let a serious crisis go to waste…

Graeme
20 days ago

Does anyone remember LPG for vehicles, phased out because it was such a ‘blight on the environment’ unlike trying to recycle electric vehicles……what a joke, don’t get me wrong, you can still get LPG, but because motorists have been forced to leave the LPG ‘community’ those who remain are being seriously ripped off to profit the diminishing network of service stations who still provide it !!!

Time to return big time to Aussie LPG !!!!

Guy Williams
20 days ago

It costs me $200 to fill half a tankwith diesel. Just driving to do shopplng, the Land Cruiser does 7 km per litre.

Ian
20 days ago
Reply to  Guy Williams

Better dump the crruiser

Hannu
20 days ago

Just returned from a trip around Victoria inland smaller towns back to Adelaide. Apart from dodging the huge potholes in Victoria, the high diesel prices will keep us at home and not moving any where until they come down.

PhilM
19 days ago

We have just changed our plans as we were going to go to Perth from Adelaide and return with the caravan for a quick two-week trip. The math was not mathing at $4500 for diesel alone! Decided to fly instead.

Jo stevens
19 days ago

Average price in Darwin is $2.92.9.puts the brakes on travelling too far ,over $3 in Kakadu

Dianne
19 days ago

Just returning from a trip to visit family in Hervey Bay. I went straight up, no sightseeing, no detours. I’m now heading back to Gawler SA the same way with just a small detour to visit a cousin in Wodonga. With diesel prices up to 287.9 at home & now living in my large Motorhome, the wheels won’t be turning much any more. I’ll probably be doing a small loop around my base going from one camp/caravan park to another in a circuit.

Alan
19 days ago

Ulladulla most servos 299.9 diesel
2.59 unleaded

Brett Stephenson
19 days ago

It is what it is. Whether we like it or not, we just have to better manage our travel. As permanents on the road we dont have the burdens of living in suburbia. Rent/Mortgage, Rates, Utility costs and the over spending on a trip to Bunnings. Just slow the pace, free camp, and enjoy our surroundings.

EVERYDAY SUNDAY

Mark Jones
19 days ago

I’ve been reading the posts of this site . My father-in-law sent me this site. I’m 53 and I lost two homes to my exes. I’m now homeless. Please have a bit of consideration and compassion for those in need. So many of the articles on here involve people being hurt or ripped off and instead of being compassionate to them so many people blame them. I get it. I’m a pragmatist. I’ve spent my life being pragmatic and “smart” but I can tell you. Sometimes shit stuff happens to good people through no fault of their own.

Albe
19 days ago

The rest of us are paying the same price to earn a living and pay our rent. Travel is a luxury. Get over it.

Glenn
18 days ago

Why is it with the high fuel prices at present they have gone up more than $1/litre in city areas but in remote areas only 40 – 50c/litre

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