Roger Cook warns WA drivers to brace for higher petrol prices as world braces for war in the Middle East

Roger Cook has warned WA drivers to brace for higher petrol prices in the wake of the latest escalation of conflict in the Middle East.

Tehran has threatened to shut down the Strait of Hormuz, where a fifth of the world’s oil supply passes through, in the wake of US strikes on Iran’s nuclear sites.

Crude oil prices increased to a six-month high of around US$75.30 a barrel on Monday.

“What everyone should be bracing themselves for is more global uncertainty,” the Premier told reporters.

“Oil prices just two short weeks ago spiked by over eight per cent, they hadn’t gone up that much in a single day since COVID. So we know that these are globally uncertain times.”

The conflict is already having an impact on Perth drivers at the petrol bowser, with prices rising by 7.5c per litre

Fuel Watch manager Ben Derecki said prices had already shot up.

“Prices have already started increasing from what we are seeing,” he said.

“The Singapore price of unleaded petrol is what’s used for pricing local fuel.

“Since the 12th of June, which is when the current conflict started, we’ve seen prices increase by 12 per cent or $15 per barrel.

“Translating that to the local pricing, over the past week, we have seen the terminal gate price, which is an indicator for us of what wholesale prices are around, has increased by 7.5c per litre for ULP.”

The average Perth metropolitan fuel price on Monday — the second cheapest day of the weekly cycle — sat at 169.6c per litre, almost 10c per litre more expensive than a fortnight ago.

The price of filling up a tank is not expected to fall while the conflict continues.

Around 20 per cent of the world’s oil travels through the Strait of Hormuz, a waterway between Oman and Iran which is just 33km wide at its narrowest point.

Following the US bombing of Iran’s nuclear facilities, the Iranian parliament voted to shut down the Strait in response.

The move would come into effect if it is approved by Iran’s Supreme National Security Council.

Mr Derecki said having the Strait blocked off would likely increase prices further.

“The uncertainty around what’s going to happen in pricing, about the level of availability, drives the pricing up. As long as that uncertainty continues, prices will continue to stay higher,” he said.

“If there is an escalation in the conflict or if something like the Strait of Hormuz was blocked off, that would be some of the factors that would also influence the increase in pricing.

“You’d expect prices to increase if those events happened.”

Mr Cook said WA’s strong economy was well positioned to withstand any global shocks, but is not immune to the impacts.

“We burn a lot of diesel in this State because of our strong industry and our remote power generation,” he said.

“We know that higher oil prices will impact our economy, that’s why we need to continue to make sure that we keep our economy as resilient as possible.”