Oil Crisis: Australians Feel the Pinch, Inflation Rises

0:00From Adelaide, this is your March 14th update. Middle East tensions, including the conflict involving Iran, are shaking up global oil markets and hitting Australians hard at the fuel pump. All prices are spiking due to supply fears, leading to shortages in some regional areas and bottlenecks in distribution. The Australian government acted quickly on Friday by releasing 20 percent of national oil reserves, about 762 million liters. Of diesel and petrol, targeted at those struggling regions. This move also supports the International Energy Agency's call for members like the U.S., Japan, and New Zealand to boost global supplies in steady prices. Panic buying has fueled the rush, with people stocking up despite government assurances of no overall shortage. Energy Minister Chris Bowen stresses its demand-driven, reminiscent of toilet paper hoarding during early pandemic days, leaving some locals unable to fill up. Higher oil costs could add up to 1 percent to inflation, pressuring the reserve bank

1:03to consider rate hikes as soon as this Tuesday, and possibly, again in May. This worsens cost of living squeezes ahead of the federal budget, complicating labor's economic plans. Economists note the bank might overlook temporary war spikes, but with inflation already high, it's a tough call. The opposition sees a chance to push alternatives, while the government eyes more tools like emergency powers if the instability drags on. This episode is brought to you in partnership with our sponsor. A pillow that sounds as good as it feels. For listening in bed, S-O-L-I-S-O-L-E-P-O, dot com.