Canberra: Australian diesel prices could rise above $3 a litre as global fuel supplies face mounting pressure, with a potential US ban on diesel exports threatening to intensify shortages and push up prices.
Fuel prices across Australia have climbed sharply since the start of September, with diesel and petrol costs reaching their highest levels since early April. Canberra recorded the highest diesel price among the capital cities at 298.7 cents per litre, while unleaded petrol reached 250 cents per litre.
Diesel prices have increased by nearly 40 cents a litre since the beginning of the month, adding around $22 to the cost of filling a 55-litre vehicle tank. The rise comes as international refineries face difficulties securing affordable crude oil amid ongoing conflict in the Middle East and disruptions to major fuel shipping routes.
Brent crude, the global oil benchmark, has remained above $100 a barrel for most of the past two weeks and reached its highest level since May. Reduced diesel exports from Gulf countries, disruptions around the Strait of Hormuz and Bab al-Mandab, and attacks affecting Russian supplies have further tightened global fuel markets.
The situation could worsen if the US administration proceeds with restrictions on diesel exports. Australia is heavily dependent on overseas diesel supplies. Government data shows the country imported more than 18.4 billion litres of diesel between January and July 2026, although only about 510.9 million litres came from the US.
Australia’s diesel stockpiles have fallen to around 31 days of supply, compared with 39 days in July. Higher fuel prices could place additional pressure on farming, mining, manufacturing, transport and food industries, while also contributing to broader inflation.
The Australian government previously reduced fuel excise in March when diesel prices exceeded $3.10 a litre, but has not announced another reduction. The rise in fuel costs is also adding to pressure on monetary policy, with the Reserve Bank of Australia expected to raise its interest rate to 4.6 percent, according to the source, as inflationary pressures intensify.
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