Petrol price panic as Middle East tension flares following Red Sea entrance being captured

Perth drivers have begun preparing for more pain at the bowser after global oil exports were threatened by Yemen rebels capturing an island at the entrance to the Red Sea, one of the world’s key shipping lanes.

Only six months after the Strait of Hormuz disruptions sent fuel prices surging above $2.60 a litre, it’s feared escalating disruption at the hands of Yemen’s Houthi rebels could have the same effect.

Locally, petrol price pain is already pushing drivers to the brink and the prospect of further increases is being met with dread.

North Beach resident Nikita Semenov said it had become cheaper to pay for lifts than to fill up.

“It’s hard to afford because wages are not going up to catch up with inflation, and then the fuel prices keep going up. Now it’s actually cheaper for me to get Ubers everywhere because the Uber prices haven’t gone up as much,” Mr Semenov said.

“I was considering running to the beach today instead of driving, just tot save some money.”

The 27-year-old said despite earning a good wage as an electrical engineer, getting by was getting tougher, adding: “Even though I’m making good money, it still hurts, even earning above the average pay grade.”

P-plate driver Sofia Tornatora, a university student living in City Beach, detailed the challenge of studying and working while trying to stay afloat financially.

“We’re actually heading to the library to study, and one of my friends can’t even come because she can’t refill her car until Tuesday when she gets another pay cheque.

“It’s difficult because we can’t really do anything to help and we’re just impacted by it. Especially now that there’s the ‘red plate, one mate’ rule, so we all have to pretty much take our own cars and can’t even rideshare — and we all have to pay for the fuel.

“Now that it’s getting more expensive, it’s just harder to commute to different places and try and get out of the house and just have the freedom that other people would have had when they were younger.”

Cottesloe’s Conor McGrath and his wife switched to an electric vehicle about two years ago to dodge uncertainty with fuel prices.

“We were always planning on getting an EV as a second vehicle for our family, and then with the crisis in the Middle East, it kind of reaffirmed our decision that moving to electric was a safer and more sustainable solution for our family,” he said.

“Demand was really high when we went into the EV sales room, but we feel that fuel prices will never go back to where they were.”

Mt Claremont woman Ute was astounded at how high fuel prices had climbed.

“It’s getting so expensive, how can you afford things? The rents are increasing, they’re charging an exorbitant amount of money for the rent. Houses prices don’t resemble the value. And then petrol, so where can you save any more money?” she said.

“We always talk about quality of life. It’s just very difficult to make ends meet, and you know you need to live in a safe environment, and it’s just very tricky to afford this anymore. If you try to work hard, always do the right thing, it doesn’t reward you at the moment.”

AMP chief economist Dr Shane Oliver said petrol prices increases would be determined by how long the disruptions continue.

“The longer the war goes on, and if the size of the blockage increases with disruption to the flow of oil out of the Red Sea, then oil prices will probably go higher. But the the main impact on Australians will be higher prices,” Dr Oliver said.

Minister for Energy and Decarbonisation Amber-Jade Sanderson said the State Government would react if necessary.

“This is a constantly and rapidly evolving global situation. We are agile and prepared to act quickly so we can continue to put WA first. WAs fuel supply remains secure,” she said.