Major companies across Australia, including Coles and Virgin, are hiking prices as global energy security and supply chains continue to be threatened amid the Middle East conflict.
Prime Minister Anthony Albanese conceded the duration of the conflict remained unclear and it was not known how long it would last.
“But I am hopeful you can see an endpoint. The objectives of denying Iran the opportunity to have a development of a nuclear weapon have been secured,” he said on Thursday.
“We will continue to monitor, continue to engage and we receive updated briefings, but we’ll continue, as well, to call for that de-escalation.”
This week, the situation escalated when gas fields and energy facilities were attacked in Iran and Qatar putting doubt on future supplies.
Tehran’s continued de facto blockade in the Strait of Hormuz – one of the world’s most critical energy chokepoints that services at least 20 per cent of global oil shipments – is also being felt far beyond The Gulf.
The International Maritime Organisation Council condemned Iran’s actions, saying the disruption had caused oil and fuel prices to surge.
In Australia, several major companies have indicted they will start reviewing prices more frequently as the conflict continues to threaten global energy security.
Coles confirmed it would increase how often it reviewed payments to its transport providers with rising energy prices.
A spokesman for the supermarket told Nine newspapers the fuel component of their freight rates would be reviewed fortnightly instead of monthly to reflect changing fuel costs more accurately.
“In the current climate, this means transport providers will be able to recoup more of the rising fuel costs,” a spokesman said.
Virgin Australia announced it would hike domestic airfares by 5 per cent from next week as costs within the aviation sector are “significantly exacerbated” by the Middle East situation.
“We are making necessary fare adjustments to reflect these cost pressures,” a spokesman said.
Qantas also announced an increase to its international airfares by 5 per cent this month and would review its airfares fortnightly as the fuel crisis worsens.
Ampol chief executive officer Matt Halliday confirmed the company would defer a maintenance program at its Brisbane refinery that would have shutdown the facility for two months.
It will allow Australia’s largest fuel supplier to continue domestic production of petrol, diesel and jet fuel at one of the country’s only two refineries.
The refineries supply about 20 per cent of Australia’s domestic market, most of Australia’s fuel supply comes from Asia.
Ampol is working on additional sources through its suppliers.
“The important role Australian refineries play in supporting the resilience of our domestic fuel supply is being reinforced in the current global oil market environment,” Mr Halliday said.
https://thewest.com.au/business/major-aussies-companies-hike-prices-as-global-energy-security-remains-under-threat-from-middle-east-conflict-c-22009164
