Western Australia, known for its vast distances and booming resources sector, is feeling the economic strain of the ongoing conflict in the Middle East. Despite being far from the action, the war in Iran has caused ripple effects that are now being felt in everyday life. From skyrocketing fuel prices to growing uncertainty in the mining sector, WA is facing a tough road ahead.
Petrol Prices Soar: A Strain on the Wallet
One of the most immediate impacts of the war has been the dramatic rise in fuel prices. In Perth, the cost of unleaded petrol has jumped nearly 70 cents per litre in less than a month — from $1.56 on February 17 to just under $2.26 by mid-March. This sharp increase is forcing locals to rethink how they go about their daily routines.
Heather Graham, a social worker in Perth, explained that she and her husband are now sharing a car to manage the escalating fuel costs. “I drop him off at work, do my shift, then pick him up,” she said. “We try to make it work so we’re not using two cars,” reports ABC News. Glenys Sorensen, another Perth resident, has even put her holiday plans on hold because of the uncertain fuel prices. “We were planning to go down south, but now we’re waiting to see what happens,” she said.
Mining Sector Bracing for Impact
The mining sector in WA, which is heavily dependent on diesel, is also starting to feel the pressure. Western Australia’s vast mining operations use diesel to power everything from trucks to generators. As fuel prices rise, so do operating costs, and some companies are starting to see the impact.
Australia’s biggest gold miner, Northern Star Resources, recently downgraded its production forecasts for the second time in as many months. Managing director Stuart Tonkin admitted that diesel costs were a significant concern. “What we don’t know going forward is the impact of oil,” Tonkin said. “We do know that it has impacts, and so we look at the sensitivities to it.”
Meanwhile, some miners like Ramelius Resources are hedging against fuel price volatility by locking in future diesel prices. This strategy allows them to mitigate some of the price uncertainty, but it doesn’t solve the issue for everyone in the sector.
Farming and Export Woes
Farmers are also feeling the squeeze. Dylan Hirsch, a canola farmer in Latham, has been forced to stop his seeding program until he can secure more fuel. With just a third of the 60,000 litres of diesel he needs for planting, Hirsch is forced to sit tight. “Normally we’d be deep ripping now, but we are pulling up, and we’ll be reserving that 20,000 litres for [beginning] seeding as a risk management strategy,” he said, referring to the need to ration fuel as a risk management strategy.
Grain exporters like John Orr are also seeing costs skyrocket. “With already thin margins in export businesses, it doesn’t take much of a cost increase to erode those margins, unfortunately,” Orr explained, highlighting how volatile fuel prices can undermine their bottom line.
Tourism Takes a Hit
Even in the tourism industry, uncertainty is creeping in. In Exmouth, operators are bracing for potential disruptions. With whale shark season in full swing, businesses like James Small’s Ocean Eco Adventures are relying on diesel to power their tours. “There’s going to be an impact, definitely, but I don’t think it’s going to be a massive one. We’ve dealt with high fuel prices before,” Small said.
For Iranian Australians in WA, the war has brought more than just economic pressure. Yashar Bahmani, a lawyer in Perth, said that members of the Iranian community are deeply worried about family back home. Despite the challenges, Bahmani and others in the community remain hopeful for a positive change, especially as they continue to support efforts to challenge Iran’s current regime.
