Petrol Prices in Melbourne: The recent Iran crisis has led to a significant increase in petrol prices in Melbourne, which currently stand at over $2.13 per liter for regular unleaded petrol varieties. This has placed additional financial burdens on residents of Victoria. It is interesting to note that this significant increase has resulted from the recent tensions in Iran, which have led to a substantial disruption of oil supplies worldwide. During the recent opening of oil markets, oil prices rose by over 10 percent, with Brent crude futures increasing from $72 to $76 per barrel. Experts indicate that this is likely to affect oil prices for Melbourne residents, which may reach up to $100 per barrel. As a result, petrol prices for Melbourne residents may continue rising, with each $10 increase affecting the overall cost by an additional 10 cents per liter.
Current Petrol Prices for Melbourne Residents Surpass $2.13 Per Liter
Image Source: ABC
What Melbourne Drivers Are Paying at the Pump Today
The current petrol prices for Melbourne residents show significant variations across the metropolitan area, with some petrol stations offering premium varieties for over $2.13 per liter for regular unleaded petrol varieties. The data provided below show the current petrol prices for some petrol stations within the Melbourne metropolitan area.
7-Eleven Royal Melbourne – Unleaded 91 – $2.13.9 per liter
BP Clarendon – Unleaded 91 – $2.13.9 per liter
Reddy Express Carlton – Unleaded 91 – $2.13.9 per liter
Ampol Foodary South Melbourne – Unleaded 91 – $2.13.9 per liter
BP Carlton – Unleaded 91 – $1.89.9 per liter
Shell South Melbourne – Unleaded 91 – $1.99.9 per liter
The average cost of ULP 91 petrol varieties across Melbourne is $2.08 per liter.
The current premium petrol varieties cost an average of $2.24 per liter for Premium Unleaded 95 and up to $2.33 per liter for Premium Unleaded 98 varieties. Some petrol stations offer up to $2.41 per liter for U98 varieties.
Price Cycle Peak for Petrol in Melbourne and Sydney
The regular unleaded fuel is now at the peak price cycle in Melbourne and Sydney. The price for regular unleaded fuel in Melbourne is now at $2.01 per liter, while in Sydney it is priced at $1.98 per liter. According to NRMA spokesman Peter Khoury, it is common for fuel retailers to begin cutting fuel prices by a few cents a day to lure customers at this time. However, it is also possible that they might remain at the peak for a longer time, considering the current supply problems.
The price cycle for petrol in Melbourne typically takes 20 days, although it might differ by up to two weeks. The ACCC tracks price cycles in Adelaide, Brisbane, Melbourne, Perth, and Sydney, as they do not occur in Canberra, Darwin, or Hobart.
Diesel Prices Compared with Regular Unleaded Prices
The prices for diesel fuel are higher than those for regular unleaded fuel in Australia. The current price for diesel fuel in Melbourne is averaging at $1.86 per liter, although it might differ from one location to another. The price for premium diesel fuel is at $1.86 per liter in metropolitan stations. The price for premium diesel fuel at 7-Eleven Fitzroy is at $1.749 per liter, while the price at Shell South Melbourne is at $1.859 per liter.
This is different from the pricing of petrol as diesel and LPG are not included in the price cycle.
Impact of the Iran Crisis on Global Oil Markets
US-Israel Strikes Trigger 10% Oil Price Spike
Military operations carried out by the United States and Israel against Iran have resulted in a sharp increase in crude oil prices. The Brent crude price has increased by 10% to trade at $80 on the over-the-counter market on Sunday. The prices rose as much as 13% at the opening of trade on Sunday, touching a high of $82 a barrel before settling at $79 a barrel. The U.S. crude prices rose by 8.4%, touching a high of $72.79 a barrel on Monday, compared to a closing price of $67 a barrel on Friday.
The strikes were on Iran’s nuclear facility at Natanz, prompting an immediate reaction from Iran. Iran launched a series of missile strikes on US military bases across the Middle East. Iran attacked the United Arab Emirates, Saudi Arabia, and other countries in the region. Iran launched drones to attack the Ras Tanura oil refinery near the city of Dammam, which is located in Saudi Arabia. Iran attacked the United Arab Emirates using drones, prompting the shutdown of the refinery.
Strait of Hormuz Emerges as a Major Supply Choke Point
The waterway between Iran and Oman allows the movement of over 20% of the world’s oil. About 15 to 20 million barrels of crude oil move through the waterway daily. Major players in the oil industry halted the movement of oil through the waterway after Iran’s warning to the ships to not move through the waterway.
Ship tracking revealed that at least a dozen empty ships on the eastern side changed direction. The UK Maritime Trade Operations Center revealed that the officers of the ships were informed of the closure of the waterway through broadcasts. However, the information was unverified.
Brent Crude Prices Rise from $72 to $76 per Barrel
Brent oil benchmarks have risen significantly since their closing on Friday. Brent oil stood at $72.87 per barrel as of February 28, prior to the strikes, and represents the highest level since July 2025. Oil prices have risen to a 12-month high of $82.37 upon opening, following which they fell to $79.10.
LNG Shipments Through Critical Strait Slow to a Trick le
Qatar, a 20% supplier of liquefied natural gas to the world, has faced severe disruptions in its LNG supplies. At least nine ships changed course to avoid the critical shipping lane, out of which seven are empty vessels heading to load cargo, and two recently loaded vessels are returning to base. QatarEnergy has announced a halt in the production of LNG as the conflict continues to persist in the area. Gas prices in Europe have risen by 39% to €44.5/mwht.
When Will Melbourne Motorists Feel the Full Price Impact?
Timeline for Tapis Crude Changes to Reach Australian Pumps
Industry experts provide differing projections on the time taken for the impact of the oil price shock to be reflected in the prices of petrol faced by Melbourne consumers. For example, one study suggests that the impact takes around four weeks to be reflected in Australian shores. On the other hand, another study indicates a shorter time lag of around seven to ten days between the fluctuations of international oil prices and the prices faced by consumers.
The country also holds minimum stock levels to protect against supply chain disruptions. Importers hold stock levels equivalent to 27 days of petrol supplies. Diesel fuel supplies, on the other hand, are enough to meet the demands for 32 days. As a result, the levels of petrol stock availability remain stable even in the face of a temporary supply chain disruption.
How a $10 Oil Barrel Price Rise Translates to 10 Cents Per Liter
The mechanism through which the cost of crude oil affects the prices of petrol faced by Melbourne motorists follows a simple rule. For example, a $1 per barrel increase in the cost of crude oil leads to a corresponding increase of 1 cent per liter. As a result, a $40 increase in the cost of crude oil would lead to a corresponding increase of 40 cents per liter.
Why Price Discounting May Pause at Cycle Peaks
Motorists are expected to be vigilant about local and foreign events at the same time. At peak points in the local price cycles, petrol stations usually discount their prices to attract customers. However, the current supply chain issues may force petrol stations to maintain peak prices for longer periods instead of adopting their conventional pricing strategies.
What Experts Predict for Melbourne’s Petrol Prices in the Future
Image Source: News.com.au
Could Oil Prices Exceed $100 Per Barrel?
Oil prices are expected to increase to more than $100 a barrel, and predictions indicate it may even go as high as $150 a barrel in the coming weeks if the conflict in the Middle East persists in the coming weeks. Brent oil hit a high of $82 a barrel, a four-year high, as a result of the conflict in the Middle East. Oil prices may increase to more than $100 a barrel in the coming weeks as a result of the conflict in the Middle East.
Comparison with the Russia-Ukraine Conflict Impact
The nearest historical precedent for the conflict between Russia and Ukraine is the oil price surge, which increased oil prices up to $125 a barrel due to the fear of supply disruption. However, the situation today differs considerably, especially with the strategic value of the Strait of Hormuz.
AMP Economist Forecasts 60% Chance of Quick Resolution
The forecasts by Shane Oliver, the chief economist at AMP, indicate that there is a 60% probability that the conflict will be resolved with limited war, which could be resolved within a week or two. In that case, the impact on the oil and gas prices would be minimal. In the case of conflict, the petrol prices could increase by 40 cents a liter, which would add $14 to the average weekly household bills based on the consumption of 35 liters.
How Rising Gas Prices May Affect Victorian Household Bills
Gas prices for Victorian customers increased by 208% since 2009, which is the highest compared to the national average increase of 134%. Close to 80,000 customers sought assistance for bill payments for the first quarter of 2025-26.
Energy Minister Pushes Renewable Energy Sovereignty
Energy Minister Chris Bowen stated that the disruption has shown that the time has come for the country to develop its energy sovereignty with the development of renewable energy, as the most reliable source of energy comes from the sun and wind, which are generated locally.
Conclusion
Melbourne motorists are facing a challenging time as the oil and gas prices continue to be affected by the rising tensions in the Middle East. Based on the analysis, it can be concluded that the situation has created a perfect storm for oil prices, which could continue rising for some time. Therefore, it would be advisable for the motorists to look for discounted prices for fuel and stock up while the prices are discounted.
FAQs
Q1. How much are petrol prices in Melbourne right now?
Petrol prices are on the rise in Melbourne, Australia, as prices for a liter of regular unleaded petrol are now above $2.13. The average price of a liter of unleaded petrol is now at $2.08. However, prices range from a minimum of $1.89.9 to a maximum of $2.13.9 for a liter of unleaded petrol.
Q2. Why have fuel prices suddenly increased in Melbourne?
A sudden increase in the prices of fuel has hit Melbourne as a result of escalating tensions between Iran and the U.S., which led to military strikes on Iran. As a result of this conflict, prices of oil rose by over 10% as markets opened on the day of the conflict. The Strait of Hormuz, through which over 20% of the world’s oil is shipped, has become a major choke point.
Q3. How long does it take for international oil price changes to affect petrol prices at Australian pumps?
Generally, changes in oil prices in the international market take 7 to 10 days to reflect in Australian petrol pumps, although other sources indicate it may take as many as four weeks. Australia has 27 days of fuel reserves for petrol and 32 days of reserves for diesel.
Q4. Could petrol prices in Melbourne reach $3 per liter?
Oil prices are predicted to rise to $100 a barrel, although other sources indicate it may go as high as $150 a barrel in the coming weeks, depending on the situation in the Middle East conflict. Every $10 increase in oil prices represents a 10 cents increase in the price of a liter of petrol. Therefore, oil prices may increase significantly, although reaching a $3 increase in a liter of petrol may require extreme conditions.
Q5. What’s the difference between petrol and diesel pricing cycles in Melbourne?
Petrol pricing in Melbourne has a 20-day pricing cycle, although the prices tend to fluctuate in a predictable manner. Diesel, on the other hand, does not have a pricing cycle and has stable prices because it is not commonly used by private motorists, although the average price of a liter of diesel in Melbourne is $1.86.
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