Petrol prices jump by 10¢ a litre over the weekend as war in the Middle East could increase food prices

Petrol prices continued to climb over the weekend, with outlets now charging up to $2.20 a litre in Geraldton amid fears the impact of war in the Middle East on Australians’ hip pocket will only worsen. Unleaded petrol prices in Geraldton jumped about 10¢ a litre over the weekend, with motorists bracing for it to get worse. There are fears the Middle East conflict will cause food prices to surge as well. The highest petrol price in Geraldton on Monday was nearly $2.20 at Caltex Tarcoola, followed by Caltex Glenfield at nearly $2.10, Metro in Mahomets at nearly $2.08 and Maisey Fuels in Webberton at $2.055. Many other outlets were hovering close to the $2/L mark, with the average being $1.95. United Rangeway Truck Stop was still the cheapest, jumping from $1.69/L on Friday to $1.78/L on Monday. Iran has threatened any vessels travelling through the Strait of Hormuz, a waterway that 20 per cent of the world’s oil and gas passes through, while major oil companies in the Middle East have downed tools because of drone strikes. FuelWatch WA manager Ben Derecki said the international crisis was having a direct impact on the State’s fuel prices. “Prior to the US and Israel strike on Iran, internationally, prices have already been increasing slightly because of the build-up over there . . . those international benchmarks on which Australia’s pricing is based have jumped significantly since then. So as of (Thursday) the benchmark for petrol had risen 30 per cent, and the benchmark for diesel had risen 60 per cent,” he said. The situation is tougher inland, with all three petrol stations in Meekatharra priced above $2.25/L. The Meekatharra Corner Store and Shell Reddy Express Meekatharra Roadhouse were the cheapest at $2.27/L, while the Meekatharra Caravan Park was the pricier option at $2.28/L. Mr Derecki said a price rise was often down to how frequent stock turnover was. “In the city, you’ve got high levels of stock turnover. So when wholesaler prices are increasing fast, the retailers are purchasing that higher price,” he said. Service stations in Sydney are seeing prices as high as $2.40/L, while Perth’s highest price on Monday was NightOwl Shell Redcliffe at almost $2.10/L. Mr Derecki said it was impossible to predict whether fuel prices would continue to rise as “situations can change overnight, either for good or bad”. “What we can do is look at the international benchmarks, and we know it takes up to a couple of weeks for some of those prices to come through. And so given the direction that benchmark is heading at the moment, we would expect prices will continue to rise in the short term,” he said. Mullewa’s two stations were sitting below $1.90/L on Monday, with Yarrumba Service Station the pricier option at $1.89/L, and Crudeli’s Auto Repairs coming in at $1.81/L. All five servos in Carnarvon were sitting above $2.10/L on Monday, with EG Ampol the most expensive at $2.19/L, and Dunning’s KCD Fuels the cheapest at $2.12/L. Rabobank’s senior food retail analyst Michael Harvey warned last week food prices could be affected by rising delivery costs and availability of fertiliser. “The key risk that we see is higher food prices if oil prices stay higher for longer,” he said. “We have already seen a sharp rise in crude oil prices, with further upside if the conflict is prolonged and supply chain disruptions worsen. This will lead to a spike in the cost of fuel on-farm and through the supply chain.” Diesel prices have also jumped, with the fuel at 12 of 15 stations in Geraldton priced above $2/L on Monday. Metro was the most expensive at $2.19/L, with Shell Geraldton Truckstop the most affordable option at $1.94/L. Dongara had a range of diesel prices, with Liberty sitting at $1.89, BP Roadhouse at $2.04, and Refuel Australia at $2.28.