Oil Crisis: Why Petrol Prices Are Surging in Australia (April 2026)

If you've filled up lately, you've probably felt the sting. Petrol shot up fast in late March 2026. The main culprit is the Strait of Hormuz, a narrow 39-kilometre stretch between Oman and Iran that handles roughly 20% of the world's oil supply. When trouble hits there, global oil markets jump. Aussie drivers pay more at the bowser.

So what's going on? What's it costing you? And what should you do now?

Why prices are rising

Tensions involving Iran have made tanker traffic through the Strait of Hormuz a lot riskier. Insurance costs have jumped. Some shipping companies are dodging the area completely and going around the Cape of Good Hope instead. That adds 10 to 14 days and a stack of extra cost. Less oil reaches market.

Brent crude pushed past US$95 a barrel in the first week of April. Back in January it was around US$78. That's a 22% jump before a single drop reaches Australia.

Here at home, the Australian Institute of Petroleum put average capital-city ULP 91 at $1.94 a litre in early April, up from $1.71 in January. Sydney and Brisbane are feeling it hardest, with some bowsers getting close to or above $2.10 a litre.

How this compares to previous oil crises

This isn't 1973. We're not seeing OPEC embargo-level chaos. But the jump is still big enough to hurt.

If you drive 15,000km a year in a medium SUV using about 10L/100km, that's 1,500 litres a year. At $2.00 a litre instead of $1.71, you're forking out an extra $435 a year. If you're a tradie doing 35,000km in a ute at 14L/100km, you're staring at roughly $1,000 extra a year. Ouch.

Want your own number, not a generic example? Use our Fuel Cost Calculator and plug in your actual kilometres.

EVs are starting to look a lot better

At prices like this, the "should I buy an EV?" question gets more serious. When petrol sits around $1.71, the maths is closer. At $2.00 and up, the numbers start looking a lot better for electric.

Charge a standard EV at home on an off-peak overnight plan, roughly 18 to 22 cents per kWh in most capital cities, and your fuel cost works out to about 65 to 85 cents per litre of petrol equivalent. That's less than half the price of regular unleaded right now.

Drive 15,000km a year in an EV and you might spend $350 to $500 on fuel. Do the same distance in a petrol SUV at $2.00 a litre and you're up around $3,000. That's roughly $2,500 a year cheaper on fuel alone. Then add lower servicing and other savings on top.

Our EV vs Petrol Calculator lets you compare purchase price, fuel, maintenance, and rego over 5 years.

How to cut your fuel costs right now

You can't control oil markets. You can control what you do this week.

• Use a fuel price app. The gap between the cheapest and priciest servo in the same suburb can be 15 to 20 cents a litre. Apps like MotorMouth, 7-Eleven Fuel, and GasBuddy show real-time prices. Save 15 cents a litre on a 50-litre tank and that's $7.50 back in your pocket.
• Fill up at the right time. Prices shift through the day. Late afternoon is often rougher. Early morning can be cheaper.
• Combine your trips. A bunch of short runs burns more fuel than one planned trip. Batch your errands.
• Check your tyre pressure. Under-inflated tyres can push fuel use up by 3 to 5%. Easy win.
• Go easy on the accelerator. Smooth driving uses less fuel. Hard launches and heavy braking cost you.
• Think about a hybrid. Not ready for an EV yet? A hybrid can still use 30 to 40% less fuel in city driving.

Will prices come back down?

Oil markets move fast. If tensions ease, prices could drop back. OPEC+ also has spare capacity it might release. But fuel markets stay tight, and the longer-term pressure on fossil fuel supply hasn't gone away.

The ACCC watches petrol pricing closely. If retailers get too cheeky during a global shock, it's the watchdog keeping an eye on it.

Why this matters for more than drivers

Higher fuel costs don't stop with your car. Diesel hits freight. Freight hits groceries. Petrol price rises eat into your disposable income and keep inflation hotter for longer.

If your budget's already tight, an extra $400 to $600 a year on fuel hurts. Use the apps. Check the tyres. Plan the trips. The small stuff matters now.