Treasurer Jim Chalmers has signalled that officials are downgrading economic forecasts ahead of the December mid-year budget update, pointing to slower growth and higher unemployment. Oil prices have climbed to US$113 a barrel after a broadening Middle East conflict, and petrol has risen by 60 cents a litre since the US and Israel attacked Iran. Westpac analysts have outlined a scenario in which oil could reach US$150. Chalmers has said the government has limited control over these pressures, and that any response to one problem could make another worse.
New Zealand's annual inflation rate came in slightly below expectations at 3.7 per cent, down from 4.1 per cent in the year to June. The rate remains above the central bank's target band, and economists expect a further rate rise, with a decision due on October 28. Petrol prices rose 19 per cent over the year to September, and the election is on November 7. Polls show a tight race between the left and right blocs.
Perth motorists are getting some relief at the petrol pump as average unleaded prices trend downwards. Fuelwatch says the average cost of unleaded will fall a further 4c on Thursday to $2.31 a litre. Last Wednesday, unleaded hit a new weekly high of $2.45 a litre. Diesel is steady at about $2.67 a litre. The cheapest unleaded is likely to be found at Vibe service stations, averaging $2.24 a litre.
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Australian biofuel producers say millions of litres of domestic biofuel were shipped overseas during the first half of the year, while the country was short of fuel. The Biofuel Producers Alliance wants the federal government to require fuel importers and refiners to buy Australian biofuels. Its chief executive, Matt Hobbs, said the industry could add about three days of supply and ease petrol prices during shocks. The federal government is consulting on a mandate that would begin in 2029. Fuel company groups say the current supply chains have kept fuel flowing despite the Middle East crisis.
Perth motorists are paying the highest monthly average for unleaded petrol on record, according to Fuel Watch data. The October average reached $2.37 a litre, up from $1.68 in January. Diesel prices dropped to $2.76 a litre in October after peaking at $2.93 in April. WA Transport Industry Association chief executive Cam Dumesny said diesel prices are expected to remain high into next year, adding to supermarket and inflation pressures. He also warned that flooding could cut Western Australia's single rail line and main road link to the east coast, which could raise costs for businesses and consumers.
Drivers queued for hundreds of metres in Adelaide on Saturday, causing traffic delays along Daws Rd at Edwardstown. The queues formed for a one-day offer at a newly opened LMCT+ fuel station, where unleaded petrol was sold for 99 cents a litre. Billionaire Adrian Portelli announced the promotion on Friday. On Saturday he said he had paid for the traffic controllers managing the site himself. The station operates on a membership model that requires an annual $99 fee.
Qantas has declined to say whether it aggressively competes with rivals on regional routes. The airline's domestic chief executive, Markus Svensson, told a Senate inquiry in Canberra that he preferred not to answer. Virgin's Andrew Cleary said fuel costs after the Strait of Hormuz closure pushed some regional routes into significant losses, forcing withdrawals from several routes. Rex has also stopped flying Sydney services to Orange and Port Macquarie, citing high fuel costs and low demand. The inquiry is due to report by December.
Residents of the north-west Victorian town of Birchip have been without unleaded petrol for almost a month. The Birchip Motel and Caravan Park, the town's only unleaded supplier, stopped ordering it due to rising costs. Its owner, Sarathi Muthukrishnan, has since ordered one more delivery but says he is unsure whether supply can continue. Residents say the shortage affects medical appointments, emergency response vehicles and fire preparation. Buloke Shire Mayor Graeme Milne said the council is exploring alternative options.
Regional Queenslanders face widely varying fuel prices, according to RACQ's latest quarterly report. Beaudesert had the cheapest regular unleaded over the September quarter, at 193.5 cents per litre, while Longreach was the most expensive at 229.2 cents. Tully had the lowest diesel prices, and Longreach again the highest. RACQ spokesperson Tristan Vorias said refinery margins for unleaded jumped from 1.2 cents last year to 29 cents in the September quarter, while service station margins on petrol fell.
Tourism businesses in the Bundaberg region of regional Queensland say fewer people are travelling, which they link to rising fuel and other costs. Carly Clark, who runs Splitters Farm, says her tourist numbers have fallen by 30 per cent. Bundaberg Tourism says visitors are booking later and spending more carefully. Whale tour operator Ben Duffy says bookings in Hervey Bay are down 30 per cent on last year, and he wants a cut to the fuel excise.
Rex Airlines has suspended its flights from Port Macquarie and Orange to Sydney from October 25, with no set date for resumption. The airline blamed high aviation fuel prices linked to the Middle East conflict and low passenger demand, saying the routes were not commercially viable. Both destinations continue to be served by another carrier. Nationals MP Alison Penfold said she was disappointed and worried about less competition leading to higher fares, and she has written to QantasLink seeking assurance on pricing.
Electric vehicle sales are surging in Australia, and a fund manager says they are helping to slow inflation. Chris Dickman of Australian Ethical calls the trend the BYD effect, pointing to low-priced Chinese cars that are lowering the cost of new and used vehicles. Battery electric vehicles now make up almost 25% of new vehicle sales, according to industry data. Adam Triggs of Mandala Partners says electrifying diesel freight trucks is the next step, and that government help may be needed.
Some used 2026 Toyota Rav4 vehicles are listing for $3,000 to $6,000 above new dealership prices, according to CarGurus data. Demand for hybrids has surged across the United States, with Toyota reporting a 29 percent rise in hybrid sales in the third quarter. Rising petrol prices, which average $4.40 a gallon nationally, are the main driver. New electric vehicle sales have fallen by almost half since last year. Used hybrid prices are also climbing, with the average reaching $34,500, according to iSeeCars.com.
