Australians urged not to panic-buy fuel amid Middle East tensions and rising prices

Australians are being urged not to panic-buy fuel amid a flare-up of tensions in the Middle East, with a peak motorist association saying prices are nowhere near April's record high.

Oil jumped to more than $US100 ($143) a barrel after renewed bombing began between Iran and the United States near vital shipping route the Strait of Hormuz.

Yemen's Houthi rebels this week struck two Saudi vessels in the Red Sea, a key route for Saudi Arabia to send its oil overseas since the strait has been shut.

Commuters are now bracing for the ripple effect at the petrol bowser.

NRMA spokesperson Peter Khoury said prices had already started to creep upwards.

"The average price for unleaded nationally has now gone up to $1.85. It's gone up just under 3 cents in the last 24 hours," Mr Khoury said.

"Diesel's gone up to $2.26 on average. It's gone up about 4 or 5 cents."

However, Mr Khoury said "there is a long way to go" before prices got to where they were a few months ago.

"To put that into context, when we hit the record highs in April, the average for unleaded was $2.50 … diesel was $3.27," he said.

'Profound impact'

Mr Khoury said price increases would have a "profound" effect, as significant price jumps or oil shocks had an "immediate inflationary impact on the economy".

"It's not at the levels we saw in April, and we certainly hope we don't get anywhere near that, but what we do know is that petrol has a major impact on the family budget," he said.

"Every industry is impacted because our diesel economy runs on diesel; so farming and agriculture, mining, manufacturing, critically transport.

"That's why you see prices going up in the supermarket aisle as well as the bowser."

He said it was important to acknowledge the federal government's 16 cents per litre excise on wholesale fuel, halved from 32 cents per litre in July, was still in effect until August 2.

When asked whether the fuel excise should be extended, Mr Khoury said the government was keeping its options open and expected an announcement in coming days.

And as the effects from higher oil prices spread across the economy, it may leave the Reserve Bank with little choice but to lift interest rates in an attempt to bring inflation down.

Warning against panic-buying

Mr Khoury said the most important thing Australians could do was not panic-buy fuel.

"One of the biggest challenges we faced as a country was at the start of the conflict when people began panic-buying," he said.

"We saw Australians buying fuel at four and five times the rate they normally would and they weren't alone. We saw industry doing the same thing.

"It unnecessarily put pressure on our supply chain."

He said it also meant people who bought large amounts of petrol when prices were at a record high "ended up stockpiling fuel that they couldn't use and was too expensive" when prices promptly fell.

Mr Khoury suggested commuters and businesses researched where they could get a good bargain.

Another hit to the pocket

Motorists in Sydney told the ABC this morning the price jump would affect their movements.

An international student fuelling up her car in Sydney said the potential spike would coincide with her rent and lifestyle expense increases.

"I have my own car and I drive a lot, so yeah, I need to take public transport and it wastes my time and will also affect my study," she said.

A manager of a logistics company said it would affect overhead costs, which "are going through the roof", as the company used a fleet of 20 to 30 cars.

"It puts the prices up and clients won't take your price, so they'll take someone that will undercut you," he said.

A Tesla driver said his friends and family who drove petrol cars would bear the brunt, but he would still be affected.

"Things are getting very tight to be honest. I'm cutting back on quite a few things and focusing on essentials," he said.