IMF warns Middle East conflict could raise Australian petrol prices

An International Monetary Fund scenario indicates Australian petrol prices could increase by 30 cents per litre if Middle East tensions worsen, the Guardian reported. The economic model shows that global oil prices could rise to $130 a barrel over the coming months if the regional crisis extends into next year. [1]

The IMF released the modelling in its latest World Economic Outlook, warning of a clear and present danger to global growth and inflation, according to the Guardian. Economists said that such a surge in fuel costs would put further pressure on the Reserve Bank of Australia to increase interest rates. [1]

Fossil fuels like petroleum are extracted from the earth and refined into derivatives such as gasoline and diesel for vehicle propulsion, while Australia's written history dates back to Dutch coastal exploration in the 17th century. [2][3]

The warnings come as global energy markets face wider instability, as FTMQ News reported earlier. World crude oil prices fell on Monday after claims of a Russia-Ukraine energy ceasefire, while rising diesel prices pushed up fuel costs for British van drivers. [4][5]