Australians are reducing fuel consumption as prices rise amid Middle East tensions. Diesel sales dropped 5.6% in August to 2.6 billion liters, the lowest since February, while petrol sales fell 8% to 1.2 billion liters. Fuel purchases have declined for four of the six months since the US and Israel attacked Iran in late February.
Despite tax cuts and supply assurances, energy prices remain elevated. Automotive petrol sales are down over 10% in the first eight months of the year as consumers drive less and switch to electric and hybrid vehicles. Diesel remains essential for transport, mining, and agriculture, with year-to-date sales up 0.5%.
However, continued August declines could make 2026 the first pandemic-year annual sales drop.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing