image sourced from original article at National Australia Bank has warned that inflation could climb to five per cent later this year as rising oil prices driven by the Middle East conflict push up fuel costs. The surge would mark the first time in three years that inflation has reached that level.
Petrol prices in Sydney have already climbed to an average of $2.15 a litre for basic unleaded, close to the $2.20 peak seen during the 2022 price shock following Russia’s invasion of Ukraine. Analysts caution that even a modest increase in crude oil prices could send Australian fuel costs to record highs within days.
The conflict is disrupting shipments through the Strait of Hormuz, a critical global oil transit route, tightening supply and increasing pressure on retailers. United Petroleum, the nation’s largest independent fuel retailer, has begun rationing supplies to distributors as global supply strains intensify.
