Australians are being forced to cut back on luxuries to afford necessities, following the rising cost-of-living pressures caused by the U.S. war on Iran.
Transport costs have skyrocketed due to the continued blockade of the Strait of Hormuz, preventing oil from being exported from the Middle East across the globe.
Australian Bureau of Statistics (ABS) figures have shown the price of automotive fuel rose almost 33 per cent between February and March, with the cost of diesel rising by 41 per cent.
This is a greater increase compared to similar world events, such as the Russian invasion of Ukraine, which caused oil prices to spike by 11 per cent in March 2022.
ABS head of price statistics, Sue-Ellen Luke said in a press release, that the annual Consumer Price Index (CPI) inflation has reached its highest point since September 2023, driven by rising housing and fuel costs.
“Automotive fuel prices rose 32.8 per cent from February to March, which pre-dates the halving of the fuel excise on April 1,” Ms Luke said.
“The increase in March is the largest monthly increase since the series began in 2017, reflecting the impact of the conflict in the Middle East on fuel prices.”
South Coast Paella owner Kristy Whitton has shared how rising costs have impacted her small business.
“Everything’s gotten a little bit more expensive but it’s nothing we can’t deal with as a community as long as we continue to support each other,” Ms Whitton said.
“Fuel and ingredients have definitely become harder to find at a good price, hopefully prices can start going back to normal soon.”
The government lowering the excise tax on fuel has provided some relief to consumers but it remains uncertain as to when cost of fuel will return to a more affordable price.
Additional reporting: Caleb Donald
