Australians cut fuel purchases as Iran war drives prices higher
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Automotive petrol sales were also down, dropping almost 8% to 1.2 billion litres.
PHOTO: REUTERS
- Australians are buying less fuel as prices rise after the Iran war, with diesel sales down 5.6% in August and petrol sales nearly 8% lower, government data shows.
- Fuel demand has fallen in four of six months since the US and Israel attacked Iran in late February, as higher energy costs push people to drive less and switch to electric and hybrid cars.
- Diesel remains harder to cut because it is vital for transport, mining and farming. If August's falls continue, 2026 could be the first yearly drop since Covid-19.
AI generated
SYDNEY – Australians are pulling back at the pump as fuel prices surge, with sales of diesel dropping in August by the most since 2022 and the decline in petrol sales deepening.
Australians bought 2.6 billion litres of diesel in August, down 5.6% from the same month a year earlier and the least since February, according to government data released on Oct 15.
Automotive petrol sales were also down, dropping almost 8% to 1.2 billion litres.
Sales of the fuels have dropped in four of the six months since the US and Israel attacked Iran in late February.
The war ignited a surge in energy prices, which are still elevated despite tax cuts and government efforts to ensure supply.
Sales of automotive petrol are down more than 10% in the first eight months of 2026 as consumers react to the spike in fuel prices by driving less and switching to electric and hybrid vehicles.
People are finding it harder to switch away from diesel, which is essential for transport, mining and agriculture.
The volume of diesel sold so far in 2026 was up 0.5% from 2025, despite the increase in prices.
However, a continuation of the declines seen in August could mean that 2026 could be the first year since the Covid-19 pandemic to see a drop in annual sales. BLOOMBERG