Diesel prices across Australia could surge beyond $3 a litre as Trump eyes cut to US fuel exports

Fuel costs have risen to levels not seen since early April, adding to risk of inflation and interest rate hike Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast Australian diesel prices could surge above $3 a litre if Donald Trump cuts off US diesel exports amid floundering negotiations with Iran. Fuel costs have risen to levels not seen since early April, adding to inflation risks and making another hike in interest rates all but certain. Canberra is recording the highest prices out of the capital cities, with diesel at 298.7c per litre and unleaded at 250c per litre on Thursday. Other cities’ prices were not far behind. Prices have risen nearly 40c a litre since the start of the month, adding $22 to the cost of filling up a vehicle with a 55-litre tank. Service stations have passed on steady increases from international refineries, which have struggled to secure cheap oil as ongoing hostilities in the Middle East prevent supply reaching global markets. The Brent crude oil benchmark price has held above US$100 per barrel for most of the last fortnight, reaching its highest point since May. Gulf countries’ exports of diesel have fallen to just a quarter of their prewar levels with the ongoing conflict preventing transit of fuel tankers through the strait of Hormuz and the smaller Bab al-Mandab chokepoint.

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