One thing Aussie motorists should do
Australians are being warned that now is the low point in the petrol cycle and they should fuel up before prices rise in the coming days.
With the price of Brent crude oil hitting a three-month high over the weekend as the Israel-Iran conflict escalates, surpassing $US80 a barrel, motorists are being urged to fill up.
'We will start to see the prices increase, but they are nowhere near as high as other economies have predicted,' NRMA spokesman Peter Khoury said. Aussie motorists are being told that now is a good time to fuel up. NewsWire / John Gass Credit: News Corp Australia
Mr Khoury said while the price of petrol was going up, it was not as much as some motorists feared, with on average drivers likely to pay 8 cents more a litre when fuelling up their car.
'Our regional benchmark – Malaysian Tapis – closed at $77 a barrel and we do expect it to go higher when the markets open tonight,' Mr Khoury said.
'But to put it in perspective, when we saw those really horrible record high prices back when Russia invaded Ukraine, Tapis was trading at $133 a barrel.'
Australia motorists' fuel costs are based on Malaysian Tapis crude oil prices.
While Tapis crude oil prices are influenced by the same factors as US brent crude oil prices, they do not necessarily trade at the same price.
The price of Brent crude oil spiked to $US80 a barrel over the weekend after the US attacked and 'completely obliterated' three nuclear sites in Iran.
Traders were worried about two major potential escalations in the conflict, with either the closure of the Strait of Hormuz or an all-out regional war negatively impacting the price of oil. Cutting off the Strait of Hormuz could increase fuel prices. NewsWire / Luis Enrique Ascui Credit: News Corp Australia
Cutting off the Strait of Hormuz could send the price of oil above $US100 a barrel, as the 32km mile stretch is the primary route of exports from Saudi Arabia, Iraq, the UAE, and Kuwait.
But the passage that feeds the world with about 30 per cent of its oil supply is still open, at least for now, pending a final decision by Iran's Supreme Council after Iran's parliament voted to close it.
Mr Khoury said it was important that Australians educated themselves before they filled up, with motorists in Sydney facing the bottom of the cycle, while Perth prices are set to fall on Tuesday.
'The reason I say that is because there is always a spread of prices,' he said.
'People are really surprised. We've had people say I thought the prices would be sky high and they are not.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
4 hours ago
- Perth Now
Expert's advice to motorists concerned that petrol prices will surge
Australian motorists worried about tensions in the Middle East affecting prices at the pump have been sent a clear message: 'Fill up now.' US President Donald Trump's administration carried out an attack on three nuclear sites in Iran on Saturday. It comes after Israel launched attacks on Iran earlier this month. Oil prices are expected to rise as a result of the escalation in conflict, however experts have spoken out to ease fears of immediate surges. 'It's really important for Australians today to understand that what we have seen again over the weekend, while it is another escalation above and beyond the escalation we saw the weekend before it, this is the Middle East,' NRMA spokesperson Peter Khoury said. 'Unfortunately, flare-ups are all too often and all too common.' The regional benchmark for oil in Australia, Tapis, is expected to increase in price by tonight, Khoury said. 'We don't know by how much,' he said. Based on what we're seeing out of the US, it could be $3 or $4 a barrel.' A possible way for Iran to retaliate against the US and Israel is to close off the Strait of Hormuz. The strait is a vital trade route used to transport 20 per cent of the world's crude oil, or about 20 million barrels per day. The Iranian parliament has backed closing the strait in response to the US attacks, though this must be approved by Iran's national security council. Oil prices could shoot above $100 per barrel if the strait is closed for a prolonged period, according to Goldman Sachs and consulting firm Rapidan Energy. JPMorgan analysts view the risk of Iran closing Hormuz as low because the US would view such a move as a declaration of war. US Secretary of State Marco Rubio on Sunday called on China to help prevent Iran from closing the strait. Rubio said it would be 'economic suicide' for Iran to close the strait because the Islamic Republic's oil exports also pass through the waterway. Currently, it remains open. Khoury said this is 'the most important thing'. 'We do not want Australians panicking,' he said. 'Yes, there is speculation about what could happen in the next days and weeks, but it is the Middle East and anything can happen. 'The other important thing for Australians to know tonight is that if you live in Sydney, Brisbane, Melbourne, Adelaide or Perth, fill up now.' A combination of prices being at or near the bottom of the cycle and turmoil in the Middle East mean now is the time to buy. 'Prices are either in the high $1.60s or in the low $1.70s,' Khoury said. 'That has everything to do with the domestic price cycles in those capital cities. 'The wholesale price in Australia has gone up about eight cents a litre since two Fridays ago when the escalation really flared up between Israel and Iran. 'It will go up again, is the expectation, based on the US decision to attack Iran over the weekend. 'But it's only gone up eight cents a litre in the last week and a bit. 'There's a lot of speculation about what could happen. It's really important that Australians focus on what is happening. 'And what is happening if you live in those bigger cities is that prices are pretty good.' NRMA spokesperson Peter Khoury has urged Australian motorists not to panic, but to fill up now for the cheapest petrol prices. Credit: 7NEWS Khoury advised motorists to check fuel prices near them and find the best deal. 'You can find some real bargains,' he said. 'On any given day, there can be huge gaps in the price of the cheapest service station and the price of the most expensive. 'In Sydney today, it's 70 cents a litre. 'Regardless of what's going on in the Middle East or anywhere else, and regardless of where we are in the price cycle, do your research, use the information that you have access to that motorists in other countries don't have. 'We fought hard to get that made public. It's there for you to use.' When asked when the conflict overseas will affect local prices, Khoury said it normally takes about seven to 10 days. Our service stations are yet to buy the more expensive barrels but when that happens, it will have a flow on effect. 'The NRMA will be monitoring those prices really carefully over the next days and weeks, because what we won't tolerate, obviously, is oil companies manipulating what's going on overseas to put their prices up any higher than they should go,' he said. Khoury also emphasised that even if the strait is closed, it would not create a similar crisis to those caused by other recent global conflicts. 'In 2022, Russia invaded Ukraine, Russia being the second-largest producer of oil,' he said. 'That created an initial shock.' 'Obviously, the world was going to enforce sanctions, and they did. That created an even bigger shock. 'At the same time that that happened, the COVID supply crisis that affected the whole world hit its peak. So we all came out of COVID lockdown at the same time. 'The whole world came out of lockdown at the same time. Demand for oil spiked. Supply could not keep up. So we had probably the worst supply issue or challenge in our lifetime. 'And then Russia invaded Ukraine. 'All of those things had to happen at the same time for Tapis, our regional oil price, to hit $133 a barrel. 'It's currently at $76 a barrel. 'So to get back to those record high prices that we saw back in 2022, you would need a catastrophe at that level to affect global supply. 'We're not there yet, clearly, based on oil prices and the wholesale price. 'And I think that's what we want Australians to focus on tonight.' -With NBC
The Advertiser
5 hours ago
- The Advertiser
Call for laws to stop harm to consumers, firms online
Australia needs new laws and regulations to prevent significant harm to consumers and businesses from the exploitative practices of US tech giants. The Australian Competition and Consumer Commission issued the warning in its final Digital Platform Services report on Monday, following five years of monitoring social networks, online marketplaces, app stores and search engines. The 408-page report issued six recommendations but also raised future areas of concern including a lack of competition in cloud computing and artificial intelligence (AI) services, and risky behaviour involving online video games. The report comes six months after the federal government launched a public consultation into digital competition proposals, and after several tech firms complained to US officials about Australia's current digital media laws. The commission's tenth and final report highlighted four existing and two new recommendations to address anti-competitive and harmful behaviour from online platforms, and chair Gina Cass-Gottlieb said existing laws were not equipped to protect Australians. "While these services have brought many benefits, they have also created harms that our current competition and consumer laws cannot adequately address," she said. "This is why we continue to recommend that targeted regulation of digital platform services is needed to increase competition and innovation and protect consumers in digital markets." Existing recommendations included a ban on unfair trading practices, enforceable codes of conduct for designated digital platforms including competition protections, and mandatory processes to help consumers, including removing scams and harmful apps, verifying advertisers, and introducing a digital ombudsman to handle disputes. A consumer survey conducted for the report found more than eight in 10 Australians supported the introduction of an independent dispute resolution body to handle complaints. Support was highest for the policing of general online marketplaces, like Amazon, Temu and eBay, followed by social networks such as Facebook, Instagram and LinkedIn, and online messaging platforms. The report also recommended the continued monitoring of online services and a permanent Digital Platform Regulators Forum comprised of existing media regulatory bodies to collaborate on streamlined legal reforms. Future areas of concern for the commission included the regulation of digital video games, such as the risk of accidental in-game spending, consumer harm from paid loot-boxes, and clear purchasing contracts. The report also noted concerns about a lack of competition in generative AI services and cloud computing, which could be dominated by firms including Amazon, Microsoft and Google. "Harms to competition in the generative AI sector could hamper innovation, result in lower quality products and services, and force Australian businesses and consumers to pay more than they otherwise would to utilise this technology," Ms Cass-Gottlieb said. The report completes the inquiry called by then-treasurer Josh Frydenberg in February 2020, and the Labor government has since committed to several changes based on its recommendations, including a ban on unfair trading practices. The government's consultation into proposed digital competition changes, including laws to govern app marketplaces, online advertising and social media, closed in February. Australia needs new laws and regulations to prevent significant harm to consumers and businesses from the exploitative practices of US tech giants. The Australian Competition and Consumer Commission issued the warning in its final Digital Platform Services report on Monday, following five years of monitoring social networks, online marketplaces, app stores and search engines. The 408-page report issued six recommendations but also raised future areas of concern including a lack of competition in cloud computing and artificial intelligence (AI) services, and risky behaviour involving online video games. The report comes six months after the federal government launched a public consultation into digital competition proposals, and after several tech firms complained to US officials about Australia's current digital media laws. The commission's tenth and final report highlighted four existing and two new recommendations to address anti-competitive and harmful behaviour from online platforms, and chair Gina Cass-Gottlieb said existing laws were not equipped to protect Australians. "While these services have brought many benefits, they have also created harms that our current competition and consumer laws cannot adequately address," she said. "This is why we continue to recommend that targeted regulation of digital platform services is needed to increase competition and innovation and protect consumers in digital markets." Existing recommendations included a ban on unfair trading practices, enforceable codes of conduct for designated digital platforms including competition protections, and mandatory processes to help consumers, including removing scams and harmful apps, verifying advertisers, and introducing a digital ombudsman to handle disputes. A consumer survey conducted for the report found more than eight in 10 Australians supported the introduction of an independent dispute resolution body to handle complaints. Support was highest for the policing of general online marketplaces, like Amazon, Temu and eBay, followed by social networks such as Facebook, Instagram and LinkedIn, and online messaging platforms. The report also recommended the continued monitoring of online services and a permanent Digital Platform Regulators Forum comprised of existing media regulatory bodies to collaborate on streamlined legal reforms. Future areas of concern for the commission included the regulation of digital video games, such as the risk of accidental in-game spending, consumer harm from paid loot-boxes, and clear purchasing contracts. The report also noted concerns about a lack of competition in generative AI services and cloud computing, which could be dominated by firms including Amazon, Microsoft and Google. "Harms to competition in the generative AI sector could hamper innovation, result in lower quality products and services, and force Australian businesses and consumers to pay more than they otherwise would to utilise this technology," Ms Cass-Gottlieb said. The report completes the inquiry called by then-treasurer Josh Frydenberg in February 2020, and the Labor government has since committed to several changes based on its recommendations, including a ban on unfair trading practices. The government's consultation into proposed digital competition changes, including laws to govern app marketplaces, online advertising and social media, closed in February. Australia needs new laws and regulations to prevent significant harm to consumers and businesses from the exploitative practices of US tech giants. The Australian Competition and Consumer Commission issued the warning in its final Digital Platform Services report on Monday, following five years of monitoring social networks, online marketplaces, app stores and search engines. The 408-page report issued six recommendations but also raised future areas of concern including a lack of competition in cloud computing and artificial intelligence (AI) services, and risky behaviour involving online video games. The report comes six months after the federal government launched a public consultation into digital competition proposals, and after several tech firms complained to US officials about Australia's current digital media laws. The commission's tenth and final report highlighted four existing and two new recommendations to address anti-competitive and harmful behaviour from online platforms, and chair Gina Cass-Gottlieb said existing laws were not equipped to protect Australians. "While these services have brought many benefits, they have also created harms that our current competition and consumer laws cannot adequately address," she said. "This is why we continue to recommend that targeted regulation of digital platform services is needed to increase competition and innovation and protect consumers in digital markets." Existing recommendations included a ban on unfair trading practices, enforceable codes of conduct for designated digital platforms including competition protections, and mandatory processes to help consumers, including removing scams and harmful apps, verifying advertisers, and introducing a digital ombudsman to handle disputes. A consumer survey conducted for the report found more than eight in 10 Australians supported the introduction of an independent dispute resolution body to handle complaints. Support was highest for the policing of general online marketplaces, like Amazon, Temu and eBay, followed by social networks such as Facebook, Instagram and LinkedIn, and online messaging platforms. The report also recommended the continued monitoring of online services and a permanent Digital Platform Regulators Forum comprised of existing media regulatory bodies to collaborate on streamlined legal reforms. Future areas of concern for the commission included the regulation of digital video games, such as the risk of accidental in-game spending, consumer harm from paid loot-boxes, and clear purchasing contracts. The report also noted concerns about a lack of competition in generative AI services and cloud computing, which could be dominated by firms including Amazon, Microsoft and Google. "Harms to competition in the generative AI sector could hamper innovation, result in lower quality products and services, and force Australian businesses and consumers to pay more than they otherwise would to utilise this technology," Ms Cass-Gottlieb said. The report completes the inquiry called by then-treasurer Josh Frydenberg in February 2020, and the Labor government has since committed to several changes based on its recommendations, including a ban on unfair trading practices. The government's consultation into proposed digital competition changes, including laws to govern app marketplaces, online advertising and social media, closed in February. Australia needs new laws and regulations to prevent significant harm to consumers and businesses from the exploitative practices of US tech giants. The Australian Competition and Consumer Commission issued the warning in its final Digital Platform Services report on Monday, following five years of monitoring social networks, online marketplaces, app stores and search engines. The 408-page report issued six recommendations but also raised future areas of concern including a lack of competition in cloud computing and artificial intelligence (AI) services, and risky behaviour involving online video games. The report comes six months after the federal government launched a public consultation into digital competition proposals, and after several tech firms complained to US officials about Australia's current digital media laws. The commission's tenth and final report highlighted four existing and two new recommendations to address anti-competitive and harmful behaviour from online platforms, and chair Gina Cass-Gottlieb said existing laws were not equipped to protect Australians. "While these services have brought many benefits, they have also created harms that our current competition and consumer laws cannot adequately address," she said. "This is why we continue to recommend that targeted regulation of digital platform services is needed to increase competition and innovation and protect consumers in digital markets." Existing recommendations included a ban on unfair trading practices, enforceable codes of conduct for designated digital platforms including competition protections, and mandatory processes to help consumers, including removing scams and harmful apps, verifying advertisers, and introducing a digital ombudsman to handle disputes. A consumer survey conducted for the report found more than eight in 10 Australians supported the introduction of an independent dispute resolution body to handle complaints. Support was highest for the policing of general online marketplaces, like Amazon, Temu and eBay, followed by social networks such as Facebook, Instagram and LinkedIn, and online messaging platforms. The report also recommended the continued monitoring of online services and a permanent Digital Platform Regulators Forum comprised of existing media regulatory bodies to collaborate on streamlined legal reforms. Future areas of concern for the commission included the regulation of digital video games, such as the risk of accidental in-game spending, consumer harm from paid loot-boxes, and clear purchasing contracts. The report also noted concerns about a lack of competition in generative AI services and cloud computing, which could be dominated by firms including Amazon, Microsoft and Google. "Harms to competition in the generative AI sector could hamper innovation, result in lower quality products and services, and force Australian businesses and consumers to pay more than they otherwise would to utilise this technology," Ms Cass-Gottlieb said. The report completes the inquiry called by then-treasurer Josh Frydenberg in February 2020, and the Labor government has since committed to several changes based on its recommendations, including a ban on unfair trading practices. The government's consultation into proposed digital competition changes, including laws to govern app marketplaces, online advertising and social media, closed in February.
Perth Now
6 hours ago
- Perth Now
ASX falls to three-week low on Iran fears
The Australian sharemarket slipped to a three-week low on Monday, despite Commonwealth Bank reaching a new record high, on the back of fears an Iranian response to the US bombing could see the price of crude oil skyrocket. On a volatile day of trading, the benchmark ASX200 fell 30.6 points or 0.36 per cent to 8,474.9 on Monday – its lowest point since June 3 – although it rallied from down nearly 1 per cent during the afternoon's trading. The broader All Ordinaries also slumped, down 35.50 points or 0.41 per cent to close the session at 8,688. The Aussie dollar also fell on the news out of Iran and is now buying US64.18c. On an overall volatile day, eight of the 11 sectors finished in the red, with financials and the energy sector leading the way. Eight of the 11 sectors fell during a volatile day of trading. Photo: Gaye Gerard / NewsWire Credit: News Corp Australia IG market analyst Tony Sycamore said the sell-off was in line with US futures on well-founded fears after the US conducted strikes with B-2 Stealth Bombers on three Iranian nuclear sites over the weekend. 'The US insists the strikes were aimed at halting Iran's nuclear ambitions, not regime change, but Trump's rhetoric suggests openness to further action, Mr Sycamore said. 'You would have been forgiven for thinking we would have a really volatile session on Monday. 'Whether it's just caution or because we have seen nothing from Iran just yet to shake things up further … we are in a hold until we know more.' One of the bright spots on the ASX was the financial sector, with Commonwealth Bank hitting a fresh record high of $184.41, before closing up 1 per cent to $184.35. Mr Sycamore said Commonwealth Bank remains a 'juggernaut that steamrollers people.' 'I don't know where it stops and when it stops but it's the best of the banks and that is the sector where people want to be,' he said. The ASX fell after the US confirmed bombs were dropped on Iran's nuclear facilities. Photo: Gaye Gerard / NewsWire Credit: News Corp Australia Overall, it was a mixed day for the major banks, with Westpac closing up 0.63 per cent to $33.42. National Australia Bank slipped on the bell, down 0.08 per cent to $38.88 and ANZ dropped 0.63 per cent to $28.21. Energy stocks, which initially bounced on the opening bell, trimmed their earlier gains in line with the oil price but still closed the day in the green. Takeover target Santos closed 1 per cent higher to $7.78 while Woodside Energy traded flat and Ampol gained 0.47 per cent to $5.86. Iron ore miners continued their weakness with market heavyweight BHP slumping 1.57 per cent to $35.64, Rio Tinto dropping 0.33 per cent to $101.83 and Fortescue Metals sliding 1.02 per cent to $14.54. In company news, shares in Australia's largest airline Qantas fell 1.85 per cent to $10.08 on the back of higher oil prices. Discounted retailer The Reject Shop announced shareholders had overwhelmingly voted in favour of a $259m takeover by Canadian discount retailer Dollarama at a meeting on Monday. Homewares and furniture retailer Adairs plunged 20.5 per cent to $2.05 after telling the market that full-year earnings would come in below last year's.
