For many Australians, the cost of owning a car is quietly climbing again.
Petrol prices have started rising in some parts of the country, household budgets remain under pressure, and global tensions in the Middle East are adding fresh uncertainty to oil markets.
While these events may feel far removed from everyday life in Australia, they can have a direct impact on the price of fuel—and the overall cost of running a vehicle.
Australia imports much of its refined fuel, which means local petrol prices are closely linked to global oil markets.
When geopolitical tensions threaten oil supply, prices can rise quickly around the world.
One of the key concerns in the current conflict is disruption near the Strait of Hormuz, a major shipping route responsible for transporting roughly 20% of the world’s oil supply.
Energy analysts warn that if supply through this route is restricted, global oil prices could surge.
Even the possibility of disruption can move markets. When oil prices increase globally, petrol prices in Australia often follow.
Central banks and economists have also highlighted that global conflicts can contribute to inflation through higher energy costs.
For drivers, this matters because petrol is one of the most immediate and unavoidable costs of owning a car.
When petrol prices increase, the impact can add up quickly.
For example, if fuel prices rise by 20–30 cents per litre, the average driver could end up spending hundreds of dollars more per year on petrol alone, depending on how much they drive.
That’s why fuel price spikes often lead many households to review their overall car expenses.
Some drivers look for more fuel-efficient vehicles, while others focus on reducing other costs associated with owning a car—such as insurance, servicing, or loan repayments.
Interest rates also play a major role in the cost of car ownership, particularly for drivers with car loans.
The Reserve Bank of Australia lowered the cash rate several times during 2025 as inflation began easing.
However, inflation pressures returned later in the year. In February 2026, the RBA increased the cash rate slightly to 3.85%.
Drivers who want to see how rates have changed over time can view the full history here.
Although the latest move was an increase, interest rates remain lower than earlier in the tightening cycle, and lenders continue to compete strongly for borrowers.
You can read more about how RBA interest rate changes can affect car loan repayments in our guide.
When fuel prices rise, many drivers start looking for practical ways to reduce the overall cost of owning a vehicle.
Some common strategies include:
Newer vehicles often use significantly less fuel than older models, which can help offset higher petrol prices.
Comparing providers periodically may help ensure you’re not paying more than necessary for insurance or other ongoing expenses.
If you already have a car loan, it may be worth checking whether your current rate is still competitive. Comparing car loans across multiple lenders can sometimes reveal better rates or repayment structures that could help reduce your monthly costs.
In some cases, borrowers may be able to refinance their loan to access a lower interest rate or adjust their repayment structure.
Refinancing means replacing your existing car loan with a new one, ideally with better terms.
Depending on the lender and your financial situation, refinancing may allow you to:
For borrowers feeling the pressure of rising living costs—including petrol prices—reviewing their loan can sometimes make a noticeable difference to monthly expenses.
Global conflicts can have ripple effects on oil prices, which in turn influence petrol prices in Australia.
When fuel costs rise, the overall cost of owning and running a car can increase.
While drivers can’t control global energy markets, they can review other aspects of their car expenses. Comparing loan options or refinancing an existing loan may help some borrowers reduce repayments or secure a more competitive rate.
If you already have a car loan, checking what options are available could be a simple way to see whether you could save.
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