Treasurer warns oil prices won’t return to normal until 2030
Australian Treasurer Jim Chalmers announced that global oil prices are not expected to return to pre-conflict levels until 2030, citing the Ukraine and Iran wars as major factors. This outlook suggests continued high inflation, increased borrowing costs, and potential further interest rate hikes for Australian motorists and the economy.
Why it matters
Prolonged high oil prices and inflation will significantly impact household budgets, business costs, and the overall economic stability of Australia and potentially other advanced economies, leading to sustained financial pressure on consumers and central banks.
shares Share article Treasurer Jim Chalmers has shared a grim update for motorists, saying oil prices are not expected to drop to normal until the end of the decade.
In a speech to an economic forum on Friday, he said the Ukraine and Iran wars have exposed the fragility of the global economy.
Jim Chalmers speech at the Citi A50 Australian Economic Forum. Supplied
“We’re not immune from the consequences of two wars, both impacting almost every economy in one way or another, posing risks to global growth, pushing up global inflation, and pushing up borrowing costs,” he said.
With oil prices above $100 a barrel for most of the past six weeks, Chalmers said the markets do not expect prices to return to pre-conflict levels until 2030.
Australian motorists are already paying more than $2 a litre at the bowser with the latest national average at $2.42.
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