October 10th 2024.
The Australian Treasurer, Jim Chalmers, has issued a warning to drivers in the country, urging them to prepare for potential increases in petrol prices. This comes as the ongoing conflict in the Middle East continues to drive up costs.
Chalmers expressed concern over the economic uncertainty that could arise from further escalation of the conflict, particularly in relation to the global oil price. He noted that the recent spike in oil prices has significant consequences for families, communities, and motorists both in Australia and around the world.
It's worth noting that almost a third of the world's oil supply comes from the Middle East, making the region a crucial player in the global market. In recent months, the price of crude oil had been decreasing, providing some relief for Aussie drivers with prices dropping below $2 per litre in most capital cities. However, this week saw a sharp increase in the international oil price benchmark Brent crude, which is now trading at around $77 a barrel - a 7% increase from just 10 days ago.
Chalmers also shared a "rough rule of thumb" from the Treasury, which suggests that a 10% increase in the oil price during a year could result in a 0.1% decrease in Australia's gross domestic product and a 0.4% increase in inflation. He emphasized the direct impact that these spikes could have on economies, not just in Australia, but also around the world.
In light of these developments, Chalmers assured that the Australian Competition and Consumer Commission (ACCC) would be closely monitoring petrol prices to ensure that businesses are not taking advantage of the situation. He also encouraged people to stay updated on the latest news, celebrity, and sports updates through their WhatsApp channel, without any comments or algorithms to worry about.
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