Are Petrol Price Hikes During Global Crises Fair, or Just Highway Robbery?
Editorial
March 5, 2026 — 4:21pm
The conflict in Iran has barely begun, yet Australian motorists are already feeling the sting at the pump. Petrol stations across Sydney wasted no time in raising prices, even before the full impact of the war could be felt. It’s a move that feels less like a response to market forces and more like opportunistic profiteering. But here’s where it gets controversial: Is this a necessary adjustment to global oil market volatility, or is it outright exploitation of a crisis?
Analysis reveals that over half of the petrol stations in Australia’s major cities have increased prices for regular unleaded by 5¢ to 10¢ per litre. This comes despite the Albanese government’s stern warning against price-gouging. But the reality is stark: with deregulated petrol, diesel, and LPG prices, there’s little to stop retailers from capitalizing on the situation. The Australian Competition and Consumer Commission (ACCC) can monitor and shame, but its power to enforce is limited.
And this is the part most people miss: The fuel industry’s term for these fluctuations—price cycles—has been steadily climbing since February, long before the conflict escalated. Global refined fuel costs surged this week, but the speed at which prices jumped locally raises eyebrows. Just last Monday, NRMA’s Peter Khoury predicted a 10% rise in oil prices but assured Australians that petrol prices wouldn’t be affected for at least a week. By that afternoon, stations were already hiking their rates. By Wednesday, prices in Sydney and Melbourne had soared to between 217.9 and 223.9¢ per litre, with some remote areas reporting nearly $4 per litre. Panic-buying ensued, with long queues forming as drivers feared the Strait of Hormuz—a critical chokepoint for one-fifth of the world’s daily oil supply—would remain closed.
Australia has a 34-day diesel supply and a 36-day unleaded petrol supply, excluding retail reserves. Rowan Lee, CEO of the Australasian Convenience and Petroleum Marketers Association, assured the ABC that even if the Strait of Hormuz were blocked, Australia’s fuel supply would remain secure, thanks to imports from Singapore, South Korea, Japan, Brunei, Malaysia, and India. So, why the rush to raise prices? It’s hard not to see it as war-profiteering.
History repeats itself. Since the 1973 Yom Kippur War, oil crises have been a recurring theme, and each time, Australian drivers have watched helplessly as prices spike during conflicts, only to fall slowly once the dust settles. Companies seem to act like trained dolphins when prices rise but turn into tortoises when they should fall. We’ve learned little from the past, and businesses continue to exploit consumers with minimal consequences. This demands a government rethink on supply, regulation, and enforcement. Despite the outcry, will anything truly change? We fear not.
But here’s the real question: Is this a fair response to global uncertainty, or is it a blatant example of corporate greed? Should governments intervene more aggressively, or is this the cost of a free market? Let us know your thoughts in the comments—this is a debate worth having.
