Australian motorists are already paying record high unleaded prices of about $2 a liter in some parts of the country and economists are now expecting prices to soon exceed $2.10. Australia’s petrol prices are linked to international oil markets via the Singapore refined unleaded benchmark, known as Mogas 95.
Ampol said geopolitical events in Ukraine and the sanctions on Russia were putting pressure on global oil prices and impacting Australian fuel prices. “We will continue to focus on delivering products safely and reliably to our customers using the strong existing supply chains we have in place,” it said.
Viva said it sourced crude oil – which it processes into refined fuel products – from many different countries and expected to be able to maintain supplies to support Australia’s energy security. “We are keeping the Australian government informed of the evolving situation,” it said.
While Viva operates in Australia under the Shell brand, all its crude oil and fuel is purchased from Vitol, the world’s largest independent trader of energy based in Singapore. Shell has no involvement or connection with Viva Energy’s crude oil and fuel supply.
Energy Minister Angus Taylor last week said the global oil market was showing “signs of uncertainty” in response to Russia’s invasion of Ukraine. Mr Taylor said Australia would work with international partners to build confidence in the market and stabilize prices, including by releasing oil stocks held on Australia’s behalf in the US Strategic Petroleum Reserve.