It will lift its domestic parcel and StarTrack Courier fuel surcharges from 12% in May to 19.5% from the start of June, the company said. It will also increase its StarTrack Express and StarTrack Premium fuel surcharges from 22.7% to 30.2% over the same period, the company added.

Australia Post’s fuel surcharge changes will impact around 30,000 of its contract customers – including some large retailers – but will not affect its retail or 250,000 MyPost Business customers, Lithos has learned.

MyPost Business users are primarily small and medium-sized businesses.

Australia Post is not the only company that plans to use surcharges to offset high fuel costs in June. Aramex Australia, a smaller postal company, will increase its domestic fuel surcharge from 12.3% in May to 18.3% in June because of high diesel prices.

Aramex Australia adjusts its domestic fuel surcharge each month based on national diesel prices two months earlier, relative to a A$1.20/litre baseline. The company increases its surcharge by 0.1% each time Australia’s average diesel price rises by 1c/litre.

Australian diesel prices have increased since the Iran war began on 28 February because of maritime disruptions around the Strait of Hormuz.

National diesel prices averaged A$2.47/litre over the week to 10 May, up from A$1.81/litre over the week to 1 March, data from the Australian Institute of Petroleum (AIP) show. Average national diesel prices peaked at A$3.19/litre over the week to 12 April, AIP data show.

By Avinash Govind

The Government would only adopt mandatory fuel prioritisation measures if there was a genuine likelihood of a prolonged supply disruption, such as the loss of a large share of supply for many months, Prime Minister Chris Luxon said at a press conference.

Modelling suggests that it is highly unlikely that New Zealand would need to apply mandatory restrictions, Luxon added.

Modelling also indicates that the most plausible disruptions to New Zealand’s fuel system are small and temporary supply shocks that can be managed through voluntary measures, Finance Minister Nicola Willis said.

Foreign oil refiners that supply New Zealand with fuel have secured crude oil feedstock until August, Willis said. Refiners have also cut production over recent months, but they are not expecting to further reduce output, Willis added.

Singaporean refiners – who are major suppliers of New Zealand fuel – reduced their petroleum output by 20% on the year in March, data released by the Singapore Economic Development Board (EDB) on 27 April show.

But the New Zealand Government has been advised that refiners supplying the country with fuel are only dealing with up to a 10% reduction in output, according to Resources Minister Shane Jones.

Singaporean refiners accounted for 32% of New Zealand’s refined fuel imports in 2024, while South Korean and Malaysian refiners accounted for 52% and 6% of imports that year, respectively, data from the Observatory of Economic Complexity (OEC) show.

If New Zealand adopts prioritisation measures, critical service providers will face no restrictions, food and freight users will face limited restrictions, other commercial users will face adjusted fuel access limits, and retail users will face transaction limits, Willis said.

New Zealand had 32 days’ worth of petrol reserves, 24 days’ worth of diesel reserves, and 32 days’ worth of jet fuel reserves on 6 May, data from the Ministry of Business, Innovation, and Employment (MBIE) show.

Ships carrying another 19 days’ worth of petrol, 21 days’ worth of diesel, and 22 days’ worth of jet fuel will arrive in the country over the next three weeks, according to MBIE.

By Avinash Govind

BP will spend up to A$100 million to refurbish five storage tanks by early 2029, Queensland’s government said. The company plans to store diesel, gasoline, and aviation fuels in the tanks, it added.

BP has the option to refurbish another five tanks – with a combined storage capacity of 49 million litres – at Brisbane Port, the Queensland Government said.

Queensland’s lease extension gives BP the certainty and confidence it needs to increase fuel storage at Brisbane Port by 20%, the company’s Australia President, Paul Augé, said.

Queensland’s government may lease other fuel storage sites to companies over the next few months. On 3 May, it asked companies to propose storage projects on government-owned land in a range of cities, including Brisbane, Townsville, and Mackay. The Government also plans to fast-track assessments and approvals for relevant refining and storage projects.

Queensland businesses have faced fuel pressures since the start of the US-Israeli war in Iran. One-third of businesses surveyed by Townsville Enterprise – a regional economic development body – have cut non-fuel costs and delayed investments because of fuel-related issues over recent months, it said on 5 May.

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Over two-thirds of businesses have also changed their transport or logistics practices because of fuel issues, it added.

Australia had 42 days’ worth of petrol reserves, 35 days’ worth of diesel reserves, and 29 days’ worth of jet fuel reserves on 9 May, Energy Minister Chris Bowen said at a press conference.

Ships carrying another 785 million litres of petrol, 450 million litres of jet fuel, and 2.3 billion litres of diesel are set to arrive in Australia over the next month, Bowen added.

By Avinash Govind

The SA Government can choose to store up to 20 million litres of diesel at the reserve, Premier Peter Malinauskas said at a press conference.

“We [set] up this strategic reserve for the worst possible scenario that we’re preparing for. But as it stands right now, there is no indication that that day will come,” Malinauskas added.

SA’s government will not compete with the Federal Government or farmers to purchase fuel, Malinauskas said on social media. The reserve will instead help build confidence for primary producers, he added.

SA has become the third state to create a fuel reserve since the US-Israeli war in Iran began in late February. Western Australia’s government partnered with supplier Cambridge Gulf to set up a fuel reserve to support rural communities in mid-April. The Victorian Government then secured 10 million litres of diesel for agricultural producers on 6 May.

IOR welcomed Malinauskas’ decision as an example of industry and government working together. “We applaud the Premier’s approach to fuel security … [and look] forward to continuing to work with all levels of government as a trusted partner in strengthening fuel security,” the company’s CEO, Drew Morland, said.

IOR also plans to work with the Federal Government on fuel security projects. It has signed a Fuel Security Facility Agreement with Export Finance Australia (EFA), a government-owned lender, to import and distribute fuel with government support, it said.

EFA will help IOR manage price volatility and working capital risks under the deal, law firm Gilbert and Tobin (G&T) said on 7 April.

G&T’s statement came just one day after the Federal Government announced its Fuel and Fertiliser Security Facility scheme, as part of a wider A$10 billion budget commitment.

The Federal Government plans to finance up to A$7.5 billion of commodity purchases and storage projects through the scheme, using loans, equity guarantees, insurance, and price support, multiple ministers said in a joint statement.

Australia had 42 days’ worth of petrol reserves, 35 days’ worth of diesel reserves, and 29 days’ worth of jet fuel reserves on 9 May, Energy Minister Chris Bowen said at a press conference. Ships carrying another 785 million litres of petrol, 450 million litres of jet fuel, and 2.3 billion litres of diesel are set to arrive in Australia over the next month, Bowen added.

By Avinash Govind

At 2:48pm, a Rodney Local Board members warned Council staff of “extreme flooding and impassable roads in Rodney.” Two hours later, at 4:30pm, Council’s Chief Executive and another Councillor alerted Auckland Mayor Wayne Brown.

But the public heard nothing until 6:30pm. “If it’s safe, stay home … don’t drive through floodwaters. We will continue to update,” Auckland Emergency Management (AEM) said in a social media post that evening, according to Mike Bush’s report into Auckland Council’s flood response.

By the time AEM posted its message, Auckland had observed 75 – 79% of its annual summer rainfall over a day, according to NIWA Weather. Multiple Councillors and Parliamentarians, the New Zealand Police, MetService, Waka Kotahi, and Fire and Emergency New Zealand were issuing periodic updates too.

It took until about 9:30pm for Mayor Brown to declare an emergency, and another few hours for AEM to transmit information about evacuation sites.

In his report about the Auckland floods, Bush was clear. “The later declaration of emergency, establishment of evacuation centres and related public messaging came too late to provide Aucklanders with timely public safety advice and reassurance,” he said.

It would be easy to argue that Auckland Council’s response was a display of incompetence. Council certainly made missteps and Mayor Brown’s late-night comments – explaining that it was “not my job to rush out with buckets” – did not help the situation. Yet that would not be entirely fair.

Council’s core problem was that Mayor Brown – the city-wide elected official expected to be leading the response – could not actually do very much. He lacked both the legal authority to direct an emergency response and the access to information needed to keep people informed.

AEM sits within Auckland Council, under the supervision of Council’s Chief Executive, not its elected officials, as is the norm in Mayor-Manager (or weak mayor) cities. Mayor Brown and other councillors pass ordinances and budgets, but lack operational and broad staffing control over Council.

The Bush Report describes that the Mayor’s Office did not make public announcements because it was struggling to find reliable information about the floods. Though the report did critique Mayor Brown for failing to ask for regular briefings.

On the late emergency declaration, the report similarly found that “once the Mayor was informed of the need for the declaration of emergency, he signed it immediately and returned it to officials.”

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As water drained from Auckland streets in the days following the floods, leaving four bodies behind, public opinion turned on Mayor Brown. A petition called for his resignation; frustration towards him was palpable.

When floods hit Auckland, residents understandably expected – in line with the central premise of representative government – our elected officials to wield control of the state, to direct public resources, order evacuations, and liaise with central government.

Auckland’s Mayor could not, constitutionally, meet that expectation. In the absence of operational authority, informational challenges are bound to arise in any crisis.

AEM was not dormant during the Auckland floods. Council staff were in constant contact with other agencies and planning next steps, including when to ask for a declaration. But without the Mayor in the room, he could not exercise the judgement that Aucklanders expected.

The gap between representative ideals and bureaucratic realities in weak mayor systems also extends beyond emergency management to the regular decisions that shape our cityscapes and regional economies.

Under local government rules, regulators assessing development applications generally need to weigh a wide range of factors, including everything from transport and economic development impacts to cultural heritage and environmental ones.

But they do not make decisions algorithmically. Rather, staffers working across New Zealand make inherently subjective judgement calls about applications they review.

As an example, while serving as an Economic Policy Advisor at Northland Regional Council, I once spent the better part of a week thinking about what the word ‘significant’ meant, reading guidance documents from Wellington and scanning criteria from municipalities in New York and New South Wales.

More frequently, skilled planners routinely approve, deny, or attach conditions to resource consents, doing work that is both vital and inherently political.

Every time a planner chooses to emphasise the economic benefits of a project over its transport impact, or alternatively attaches transport-related conditions to an economic project, they shift power from one faction of society to another. They also shift that power without a mandate from the voting public.

Planning work requires technical expertise that Mayors are not universally capable of providing. But elected representatives – and, in particular, Mayors elected city-wide – are perfectly able to guide priorities, within the bounds of the planning ordinances and under the threat of judicial review.

NIMBY mayors and their voters have every right to expect planners to emphasise cultural heritage protections over housing effects when assessing applications. Just as development-oriented ones have the right to expect the opposite.

Planning systems, in our current mayoral system, select for continuity, even in situations where voters explicitly ask for change. Giving Mayors the right to appoint planning personnel, at a managerial level, would maintain technical expertise while reaffirming representative control over the state.

When New Zealanders vote for Mayors, they expect them to shape Council operations, not just policies and funding decisions. And with our current system of weak mayors, they are persistently let down, trained to expect disappointment from local politicians and rigidity from local government.

By Avinash Govind

WA is the only Australian state with a triple-A credit rating from both S&P Global and Moody’s, its Treasurer Rita Saffioti said on 7 May. The state’s operating surplus will fall from A$3.5 billion in 2025-26 to A$1.8 billion in 2027-28, but then rise to A$4.1 billion by 2029-2030, Budget forecasts show.

WA’s government has allocated A$9.1 billion to healthcare projects in its 2026-27 Budget. Over two-thirds of the funding – equivalent to approximately A$6.5 billion – will go towards increased hospital services funding, the Government said.

It plans to spend another A$1.5 billion on building and upgrading hospitals and related infrastructure in 2026-27, as part of a four-year, A$5.5 billion programme.

The Government’s 2026-27 Budget also aims to tackle mental health and rural health challenges. WA will spend A$414 million on mental health and substance abuse services, including community health projects and crisis support schemes, the Government said.

It plans to invest another A$492 million into regional hospitals, patient support programmes, and expanded regional health services.

The Government’s 2026-27 Budget also focusses on housing. WA’s government will spend A$4.7 billion on housing-related projects, it said.

The state intends to invest A$1 billion in a Housing Australia Future Fund partnership that will create 1,426 homes, the Government said. It will also spend A$452 million to build 165 social homes, refurbish 215 homes, and maintain 45,000 homes, the Government said.

WA’s government additionally plans to build enabling infrastructure – including water and power systems – to support housing projects around transport corridors. It will spend A$1.3 billion on projects located around Perth railway stations and growth areas.

The WA Government’s 2026-27 Budget come days after it partnered with the Federal Government to invest A$2 billion into housing and housing-related infrastructure projects to support 34,000 new homes.

The Federal Government will invest over A$1 billion into the state under the partnership, with WA’s government covering the rest from its budget, they added.

By Avinash Govind

It will then grow by 2% annually from 2027-28 until the end of the decade, according to forecasts released on 7 May.

But the WA Government’s forecasts are highly uncertain. “The [Budget] outlook is particularly sensitive to the persistence of inflation, the duration of restrictive financial conditions, the pace of adjustment in the housing market, developments in key commodity markets, and potential supply chain disruptions,” it said.

The WA Government expects the state’s economic growth rate to fall because of reduced net export growth. It expects the state’s net export growth rate to fall each year between 2025-26 and 2029-2030, from 3% to 0.25%, forecasts show.

WA’s resource firms – including iron ore exporters – plan to hold production levels steady and focus on decarbonisation projects, the Government said.

Rio Tinto plans to develop iron ore mines with a combined capacity of 130 million tonnes per year of ore to replace older sites, rather than to increase its production capacity, over the next decade. Fortescue also cut back on new mine development spending in 2025-26.

Housing investment will support WA’s economy until the end of the decade. The state’s government expects dwelling investment to grow by 5.25% in 2026-27 and at an average rate of 2.7% from 2027-28 until 2029-2030, forecasts show.

Elevated land sales, population growth, and building approvals support the forecast, it said.

WA’s government partnered with the Federal Government to invest A$2 billion into housing and housing-related infrastructure projects on 3 May, the governments said in a joint statement. The investments will support 34,000 new dwellings, including 11,000 units for first home buyers.

House prices in Perth will rise by 9% in 2026-27 and 4.6% in 2027-28, before dropping to just 0.5% by 2029-30, forecasts show.

“Lower population growth, alongside increasing housing supply as more dwellings are completed, is anticipated to support greater stability in prices [towards the end of the decade],” the Government said.

WA’s annual population growth rate will plateau at 1.5% in 2027-28, down from 1.8% in 2025-26, forecasts show. The Government expects population growth to slow because of increased emigration, reduced skilled migration, and reduced working holiday tourism, it said.

By Avinash Govind

Just under 60% of the sector’s non-labour input costs are directly exposed to the Iran war, RBNZ said in the May edition of its Financial Stability Report on 6 May. Two-thirds of its exposure comes from petrochemical inputs, which often come from the Persian Gulf and pass through the now-closed Strait of Hormuz, RBNZ data show.

On 16 April, New Zealand materials producer Fletcher Buildings told investors that it may increase plastics prices by up to 36% because of Iran war-related input cost pressures.

New Zealand’s transport, fishing, and aquaculture sectors are also heavily exposed to the Iran war, largely because of direct fuel and freight costs. Domestic diesel prices increased from NZ$1.87/litre on 27 February – immediately before the war began – to NZ$3.51/litre on 24 April, data from the Ministry of Transport show.

New Zealand’s Ministry for Primary Industries (MPI) is exploring options to allow fisheries to carry forward more of their unused annual catch quotas than normal this year to support the sector, according to industry group Seafood New Zealand. Fisheries can generally carry over 10% of their catch quotas each year, according to MPI.

New Zealand’s agricultural producers have some exposure to the Iran war, with 15% of dairy farming inputs and 12% of sheep, beef, and other farming inputs exposed to fertiliser supply chains. But New Zealand fertiliser producer Ballance is confident it will have enough nutrients to support farmers in autumn, it said in early April.

By Avinash Govind

Australia’s government plans to finance up to A$7.5 billion of commodity purchases and storage projects through a Fuel and Fertiliser Security Facility, multiple ministers said in a joint statement. It will finance projects through loans, equity guarantees, insurance, and price support, they added.

The facility builds on the Government’s existing underwriting scheme, which it introduced in April. Australia’s government agreed to work with importers CSBP and Incitec Pivot to underwrite fertiliser purchases on 22 April, Agriculture Minister Julie Collins said at the time.

It has also underwritten 450 million litres of diesel purchases and 100 million litres of jet fuel purchases since mid-April, Albanese said on 1 May.

In its 2026-27 Budget, the Australian Government will also allocate A$3.2 billion to create a state-owned, one-billion-litre diesel and jet fuel reserve to support regional communities and essential users, multiple ministers said.

The reserve brings Australia in line with other International Energy Agency members, Energy Minister Chris Bowen said at a press conference. “We are a minority around the world. 22 out of 32 members of the International Energy Agency have a national government-owned fuel reserve,” Bowen said.

Western Australia’s government partnered with fuel supplier Cambridge Gulf Limited to create a state-owned fuel stockpile on 14 April. Cambridge Gulf has agreed to store up to 12 million litres of government-owned fuel at a facility in Kimberley to support remote communities and businesses.

Most of Australia’s fuel reserves are currently held by private companies under the government’s Minimum Stockholding Obligation (MSO) scheme. Fuel companies currently need to hold 20 – 32 days’ worth of diesel and 24 – 27 days’ worth of petrol and jet fuel under the MSO.

But the Government plans to increase MSO obligations by about 10 days’ worth of fuel for each fuel type – in addition to creating the public reserve – Albanese said.

Australia had 43 days' worth of petrol reserves, 28 days' worth of jet fuel reserves, and 33 days' worth of diesel reserves on 28 April, data from the Department of Climate Change, Energy, the Environment, and Water show.

Australia received 92 shipments of fuel in April, more than in any other month this year, Energy Minister Chris Bowen said. Australia has more fuel in the country than it did before the US-Israeli war in Iran began, Bowen added.

Australia imported fuel from traditional trade partners – like South Korea and Singapore – and new ones like the Netherlands, Algeria, and the Americas, Prime Minister Albanese said.

The Australian Government aims to expand the country's fuel refining capacity, in addition to securing and storing imports. It will allocate A$10 million to co-fund refining feasibility studies with state governments in its upcoming budget, Albanese said.

“We know there’s at least one serious proposal that will receive the support of a state government and [the] Federal Government to examine the possibility of additional refining capability going forward as well,” Albanese added.

One of Australia’s two operational refineries, Viva Energy’s Geelong plant, is operating at 80% of its jet fuel and diesel capacity, and 60% of its petrol capacity, because of a 15 April fire.

By Avinash Govind

The state’s forecasts assume that West Texas Intermediate (WTI) crude oil prices will average $100/barrel (A$140/barrel) in April – June 2026 and then fall to $65/barrel by June 2027, the Department of Treasury and Finance said on 5 May.

An extended oil shock could cut Victoria’s real growth rate by 0.72% points in 2026-27, it added.

WTI crude futures traded at $104.50/barrel on 5 May, up from $67.02/barrel on 27 February. Iran closed the Strait of Hormuz on 28 February because of US-Israeli attacks, blocking crude oil exports from the Persian Gulf.

The Reserve Bank of Australia’s baseline inflation forecast released on 5 May assumes that Brent crude oil prices will peak at $100/barrel in April – June 2026, before falling to $75/barrel over the next two years. Brent crude futures traded at $113.18/barrel on 5 May, data from Trading Economics show.

Brent crude oil comes from the North Sea, while WTI crude oil comes from North America. Traders often use Brent crude prices to set contract terms for Persian Gulf oil.

State forecasters expect real household consumption, business investment, and public spending to contribute 1.25%, 0.75%, and 0.5% points of growth, respectively, in 2026-27. But net trade will cut growth by 0.75% of growth, forecasts show.

Victoria’s state government plans to cut its infrastructure investment spend each year until 2030, from A$21.4 billion in 2025-26 to A$15.3 billion in 2029-30. It will spend $19.4 billion on infrastructure projects in 2026-27, with a focus on train fleet expansions and school building projects, according to Victoria’s Budget.

Victoria’s planned infrastructure slowdown forms part of its post-Covid 19 plan to reduce net debt as a portion of the state’s economy. The state government expects its net debt to gross state product (GSP) ratio to fall from 24.7% in 2025-26 go 24.4% in 2029-30, it said.

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The Victorian Government also announced A$2.5 billion in cost-of-living measures in its 2026-27 Budget, partly because of the US-Israeli war in Iran.

“Donald Trump’s war in the Middle East is resulting in higher prices at the fuel pump, putting Victorians under more pressure,” Victorian Treasurer Jaclyn Symes said. “This Budget acknowledges the real challenges Victorians are facing,” Symes added.

Victoria’s planned cost of living measures include a 50% cut in public transport costs until January 2027, free public transport until the end of May, and additional funding for food banks.

By Avinash Govind

RBA expects Australia’s consumer inflation rate to remain above its 2-3% target band until mid-2027 and only return to its 2.5% target by mid-2028, under its baseline economic forecast, it said today. The bank has forecasted a peak annual consumer inflation rate of 4.8% in June 2026.

RBA’s baseline forecast assumes that Brent crude oil prices will peak at $100/barrel (A$140/barrel) in April – June 2026, before falling to $75/barrel over the next two years. Brent crude futures traded at $113.18/barrel on 5 May, data from Trading Economics show.

RBA’s forecast depends on Iran quickly reopening the Strait of Hormuz and allowing shipping flows to restart, the bank said. But tensions near the Strait have escalated in recent days.

The United Arab Emirates shot down 12 ballistic missiles, four drones, and three cruise missiles from Iran on 4 May, the country’s Ministry of Defence said today. Iran’s drone and missile barrage came hours before the US Central Command announced that it had targeted Iranian boats near the Strait of Hormuz.

Iran, the US, and Israel halted bombing campaigns and missile barrages on 16 April, following Pakistan-brokered ceasefire talks.

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Australian financial conditions have tightened since the RBA’s February meeting because of the US-Israeli war in Iran and cash rate expectations, the bank said. But economic indicators suggest that the country’s labour market remains tight, it added.

Consumer and business confidence also declined in March, though this has not translated into reduced household spending, the RBA said.

Nominal household spending increased by 6.3% on the year in March, partly because of elevated transport-related spending, data from the Australian Bureau of Statistics (ABS) show. Spending increased on the year across every product category, except for alcohol and tobacco, in March, ABS data show.

Short-term inflation expectations have increased since the start of 2026, the RBA said in its Monetary Policy Statement today. Elevated inflation expectations increase the risk of inflationary pricing and wage-setting behaviour, it added.

By Avinash Govind

Australia and Japan have committed to maintaining open trade flows of essential goods, including refined oils and gas, Albanese said at a press conference.

“We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency,” Takaichi said.

The pledge will help secure fuel supplies for both countries and shield consumers from uncertainty, Energy Minister Chris Bowen said in a statement.

Japanese producers supplied Australia with 4.3% of its refined petroleum imports in 2024, while Australian producers supplied Japan with 40% of its liquefied natural gas imports. Japanese oil and gas producer Inpex – which is partly state-owned – is an investor in three Australian LNG projects and two oil projects.

The two countries will also collaborate on quantum computing-driven artificial intelligence and biotechnology development, critical mineral projects, cybersecurity issues, and defense procurement, according to the statements.

Australia and Japan’s defence initiatives include defence co-production and joint asset maintenance, advanced weapons testing, and training.

The Australian Navy agreed to buy three Mogami-class frigates from Japanese manufacturer Mitsubishi on 18 February. The company will deliver the vessels from 2029, Defence Minister Richard Marles and Defence Industry Minister Pat Conroy said in a joint statement.

Mitsubishi will build the three frigates in Japan, Conroy said. But it will produce future Mogami-class vessels at the Henderson Defence Precinct in Western Australia, Conroy and Marles said.

By Avinash Govind

The Federal Government will invest over A$1 billion into the state, with WA’s government covering the rest, they added.

The joint investments will support 34,000 new dwellings – including 11,000 units for first home buyers – and water and power infrastructure. WA’s government expects developers to deliver new dwellings from 2027, it said.

WA will spend A$1.3 billion of the joint investment on enabling infrastructure and land development work in regional areas and along transport corridors, with the remaining A$700 million going to housing projects.

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The two governments’ investment will flow through a range of new and existing state-level programmes.

WA’s government plans to build 500 new homes for first home buyers and sell them through a shared equity scheme, it said. The state’s Housing Authority will buy a 35% share of the new houses through state-owned lender Keystart, cutting effective purchasing costs without lowering house prices. WA and federal governments have allocated A$375 million to the scheme.

They will also offer developers up to A$250 million in low-cost financing for affordable homes through Keystart.

The Property Council has welcomed the joint housing investment. The funding will help WA developers build new affordable homes and new infill developments, it said on 3 May. “The ability to access low-cost financing … will help apartment projects in key infill areas get out of the ground faster,” Property Council WA Executive Director Nicola Brischetto said.

House prices in Western Australia rose by 23.8% over the year to March 2026, data from the National Housing Supply and Affordability Council (NHSAC) show. Just 17% of homes in the state were found to be affordable for households on median incomes in 2025, down from 25% a year earlier, according to NHSAC data.

WA house prices partly increased in 2025 because of high population growth and low housing growth, NHSAC said in its State of the Housing System report.

WA aims to increase its housing supply by 130,000 homes by 2029, relative to 2024 levels, under Australia’s National Housing Accord. But Master Builders – a construction industry group – has forecasted a 13,000 housing shortfall relative to the state’s target.

“Supply-side measures are what are needed to grow available stock, not simply [shift] demand around,” Master Builders Australia CEO Denita Wawn said on 3 May. The industry group has welcomed WA’s investment.

Australian state and federal governments plan to increase Australia’s total housing supply by 1.2 million homes by 2029, from 2024 levels, through the National Housing Accord.

By Avinash Govind

E tū workers plan to strike on the 4^th, 6^th, 8^th, and 10^th of May, the union’s Industry Director, Mat Danaher, told Lithos.

E tū and Rio Tinto have agreed to meet for mediation on 20 May, Danaher said.

“The union has previously asked for mediation, and the employer attended but did not take it seriously. We expect them to be a bit more serious now,” Danaher added.

On 2 May, Rio Tinto told RNZ that it will meet with E tū on 20 May and continue to engage with it in good faith. The company and its local subsidiary – New Zealand Aluminium Smelter – did not respond to questions from Lithos over the weekend.

Unions represented 39,573 manufacturing workers, equivalent to about 19% of the manufacturing workforce, in March 2025, data from the New Zealand Companies Office show.

New Zealand’s manufacturing unionisation rate has remained stable over the last decade, despite a drop in sectoral employment. Unions represented 19% of New Zealand’s manufacturing workforce, equivalent to 46,108 workers, in March 2015.

Unionised workers in New Zealand can strike over bargaining disputes after 40 days of negotiations, if their collective agreements have expired, according to Employment New Zealand (ENZ).

Workers launched just 22 work stoppages over the nine months to September 2025, data from ENZ show. But over 100,000 public sector education and healthcare workers launched funding-related strikes in October.

By Avinash Govind

The two governments have called on other countries to help keep global energy supply chains open. They will also notify and consult each other on potential liquid fuel supply disruptions, according to the statement.

South Korea is Australia’s largest supplier of diesel, second largest supplier of petrol, and third largest supplier of jet fuel, Foreign Affairs Minister Penny Wong said at a press conference in Seoul.

Australia, in turn, is South Korea’s largest supplier of liquefied natural gas, Wong added.

South Korea refiners depend on the Strait of Hormuz – which Iran closed on 28 February because of US-Israeli attacks – for around 70% of their crude oil feedstock, according to Wong.

Australia’s statement with South Korea comes weeks after Prime Minister Anthony Albanese pledged to work with Malaysian and Bruneian leaders on supply issues related to essential goods, including refined oils, fertilisers, and gas.

Malaysian state-owned refiner Petronas plans to prioritise fuel exports to Australia, after domestic needs are met, Malaysian Prime Minister Anwar Ibrahim said on 16 April, at a press conference announcing the cooperation pledge.

A day later, on 17 April, Wong and Singaporean Foreign Affairs Minister Vivian Balakrishnan also negotiated a legally binding protocol on essential supplies. Singapore and Australia will endeavour not to adopt export restrictions on essential supplies between each other, the Ministers said.

Australia had 44 days’ worth of petrol reserves, 30 days’ worth of jet fuel reserves, and 33 days’ worth of diesel reserves on 21 April, according to the Department of Climate Change, Energy, the Environment, and Water.

In addition, 58 ships loaded with fuel were heading to Australia on 26 April, Energy Minister Chris Bowen said at the time.

Australia remains at Stage 2 of its National Fuel Strategy, indicating effective fuel supply chains with localised disruptions. The Australian Federal Government is tasked with adjusting fuel standards, engaging with foreign governments, and underwriting fuel purchases at Stage 2.

By Avinash Govind

The changes will cut Qantas Group’s international capacity by 2% points over the quarter, the company told investors.

Qantas will suspend its Sydney – Bengaluru route from August to October, but increase the capacity of its Sydney – Paris and Sydney – Rome routes over the same period because of high demand.

Qantas and Jetstar have also cancelled trans-Tasman flights scheduled over the next few months, Qantas Group said.

Qantas Group’s jet fuel costs more than doubled between late-February and mid-April, largely because of jet refining margins, it said on 14 April. The company expects jet fuel prices to hover between A$185/barrel and A$200/barrel over January-July.

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Futures prices for Brent crude oil – which refiners use to produce jet fuel – reached $110.84/barrel (A$154.16/barrel) on 1 May, up from $72.87/barrel on 27 February. Crude oil prices spiked in early March because Iran closed the Strait of Hormuz in response to US-Israeli attacks.

The Australian Government has taken steps to strengthen refined oil supply chains since early March, though its measures will not impact jet fuel costs. It pledged to work with Malaysian, Singaporean, Bruneian, and South Korean authorities to maintain the flow of essential goods, including oil and gas, in April.

The Government has also underwritten diesel and jet fuel purchases since mid-April. “We have now secured more than 450 million litres of additional diesel and 100 million litres of additional jet fuel to keep Australia moving,” Prime Minister Anthony Albanese said on 1 May.

Australia had 30 days’ worth of jet fuel reserves on 21 April, according to the Department of Climate Change, Energy, the Environment, and Water.

Qantas Group’s changes come a day after Air New Zealand scrapped dozens of regional New Zealand flights because of jet fuel costs.

“[Air New Zealand’s cancellations] affect around 2% of passengers due to travel across [July],” an Air New Zealand spokesperson told Lithos. “We’ve targeted the [cancellations] to minimise disruption and to ensure that the vast majority of impacted customers can still travel on the same day,” they added.

Air New Zealand’s jet fuel prices increased from $85/barrel - $90/barrel in February to $150/barrel - $200/barrel in early March, the company told investors on 10 March.

By Avinash Govind

“The [cancellations] affect around 2% of passengers due to travel across [July],” an Air New Zealand spokesperson told Lithos. “We’ve targeted the [cancellations] to minimise disruption and to ensure that the vast majority of impacted customers can still travel on the same day,” they added.

Air New Zealand’s cuts will impact 23 flights between Nelson and Auckland, 32 flights between Nelson and Wellington, and 15 flights between Nelson and Christchurch, Nelson Mayor Nick Smith said in a social media post.

“[The cancellations are] likely to affect seat availability and prices as well as reduce [Air New Zealand’s] ability to manage disruptions, including weather-related delays and cancellations,” Smith added.

Air New Zealand notified Smith of the cancellations but has not revealed the other routes affected by its decision.

Air carriers have cancelled 266 flights headed to or from Nelson, impacting about 12,000 seats, since the start of the US-Israeli war in Iran, according to Smith.

Refined oil prices spiked in early March because Iran closed the Strait of Hormuz – a vital crude oil passage – on 28 February, in response to US-Israeli attacks.

Jet fuel prices, specifically, increased from $85/barrel - $90/barrel (A$112/barrel – A$126/barrel) in February to $150/barrel - $200/barrel in early March, Air New Zealand told investors on 10 March.

Air New Zealand’s fuel costs have likely increased since early March. Futures prices for Brent crude oil – which refiners process into jet fuel – hovered at $111.61/barrel on 30 April, up from $87.80/barrel on 10 March, data from Trading Economics show.

Air New Zealand had planned to consume 2.9 million barrels of jet fuel in March-June, it said on 10 March. But it announced multiple rounds of regional and Trans-Tasman flight cancellations in March and April.

New Zealand had 32 days’ worth of jet fuel reserves in the country on 26 April, up from 25 days’ of reserves on 22 April, data released by MBIE on 29 April show. The country’s overall jet fuel stock levels remain sufficient, the country’s Resources Minister, Shane Jones, told Lithos at the time.

Fuel suppliers have also assured air carriers - including Virgin Australia - about fuel supplies into June, Lithos has learned.

But planned future jet fuel deliveries into New Zealand have slowed over the last week. Ships carrying 17 days’ worth of jet fuel reserves are set to arrive in the country over the three weeks from 26 April, down from the 21 days’ worth of reserves set to arrive over the three weeks from 22 April.

The New Zealand Government will consider additional measures to boost jet fuel supplies if distributors struggle to access supply, Jones told Lithos.

By Avinash Govind

“I can confirm that the [Government’s upcoming] Budget will not undermine existing contracts on gas exports,” Albanese said at a speech to the Chamber of Minerals and Energy of Western Australia (CME) on 29 April.

“The quality and reliability of … Australian gas has been critically important to the assurances we have received [from foreign governments] for future supplies of petrol, diesel and fertiliser,” the Prime Minister added.

Albanese’s comments, notably, do not contradict backbench Labor MP and former Industry Minister Ed Husic’s recent statement in support of a gas export tax.

“I do support the idea of a gas tax on uncontracted exports that then gets extended as future contracts are being negotiated,” Husic told the ABC on 22 April.

Australian gas exports have supported bilateral fuel deals over recent months. On 17 April, Singapore and Australia negotiated a legally binding protocol on essential supplies, including both natural gas and refined fuel.

Australian producers account for 32% of Singapore’s LNG imports, while Singaporean refiners account for 26% of Australia’s refined fuel imports, Prime Minister Albanese said on 10 April.

Albanese has also pledged to cooperate with Malaysian Prime Minister Anwar Ibrahim and the Sultan of Brunei, Haji Hassanal Bolkiah, on supply issues related to refined petroleum, fertilisers, and natural gas.

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Albanese’s gas comments come alongside a push for gas export taxes from multiple Australian politicians, including Independent Senator David Pocock and the Australian Greens.

Australian producers currently pay a 40% federal tax on profits generated from offshore gas, through the Petroleum Resources Rent Tax (PRRT), but can claim development cost deductions on 90% of PRRT obligations. Prior to 2023, producers could claim deductions on all PRRT obligations, limiting payments.

Chevron made its first PRRT payments on sales linked to its Gorgon and Wheatstone natural gas projects in 2025, according to the company. It opened the two projects in 2016 and 2017, respectively. Chevron and its partners invested A$80 billion to develop Gorgon and Wheatstone, its Australian General Manager of Finance, Maggie McCourt, said on 24 April.

Australia replaced gas excises and royalties with the PRRT to support investors in 1988, Treasury said in a 2016 review of the scheme.

“While [excises and royalties] are relatively easy to collect and difficult to avoid, they were seen to interfere with investors’ search for the best returns as they are based on volume or value of production, rather than on the profitability of petroleum projects,” Treasury said.

By Avinash Govind

“[Measures] would be considered only if fuel companies were unable to access supply, and that is not what current information shows,” Jones said.

The Ministry of Business, Innovation and Employment (MBIE) continues to closely monitor fuel supply, demand, and shipping movements and keeps ministers regularly informed, Jones added.

Fuel suppliers have assured air carriers - including Virgin Australia - about fuel supplies into June, Lithos has learned.

New Zealand had 32 days’ worth of jet fuel reserves in the country on 26 April, up from 25 days’ of reserves on 22 April, data released by MBIE today show. New Zealand’s overall jet fuel stock levels remain sufficient, Jones said.

But planned future jet fuel deliveries into the country have continued to slow over the last few days. Ships carrying 17 days’ of jet fuel reserves are set to arrive in New Zealand over the three weeks from 26 April, down from the 21 days’ of reserves set to arrive over the three weeks from 22 April.

The New Zealand Government will take advice on whether it should buy additional supplies of jet fuel, though the country has limited jet fuel storage capacity, Jones said at a press conference on 28 April.

New Zealand’s government has already taken steps to shore up its diesel reserves. Z Energy agreed to buy and store 90 million litres of diesel - equivalent to about 9 days’ supply - on behalf of the New Zealand Government to boost national reserves on 28 April.

Z Energy – Ampol’s New Zealand subsidiary – will store the diesel at the now-dormant Marsden Point oil refinery. Last week, the Government secured the right to store nine days’ worth of diesel at Marsden Point from 31 May 2026 until the end of 2027.

New Zealand had 36 days’ worth of petrol reserves and 28 days’ worth of diesel reserves in the country on 26 April, MBIE data show. It had 36 days’ worth of petrol reserves and 22 days’ worth of diesel reserves on 22 April.

By Avinash Govind

Regular unleaded petrol and diesel prices rose 33% and 41% on the month in March, respectively, pushing up Australia’s annual automotive fuel inflation rate to 24%, ABS data show.

Australia’s annual automotive fuel inflation rate last exceeded 20% in July 2022, soon after Russia’s invasion of Ukraine.

Australian fuel prices were falling before Israel and the US attacked Iran on 28 February. The country’s annual automotive fuel inflation rate dipped to -7.2% in February.

But global oil prices spiked in March because Iran closed the Strait of Hormuz at the start of the Iran war. Brent crude futures traded at $111.18/barrel on 29 April, up from $72.87/barrel on 27 February, data from Trading Economics show.

Fuel price increases were not the sole driver of inflation in March. Australian food, alcohol, clothing, housing, and education costs all increased by at least 3% on the year that month.

Elevated gold and silver jewellery costs caused clothing prices to rise in March, while electricity cost increases drove housing cost inflation.

Electricity costs rose by 25% on the year in March because households ran out of electricity price rebates, ABS data show. Annual electricity inflation hovered at just 3.9% in March, after excluding the impact of rebates, according to the ABS.

Wholesale electricity prices fell on the year across every state in Australia’s National Energy Market, data from the Australian Energy Market Operator show.

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Australian consumer inflation expectations have increased over recent weeks. Consumers’ two-year forward inflation expectations reached 6.6% over the week to 26 April, according to polling from ANZ and Roy Morgan.

This is down from 7.1% over the week to 19 April, likely because of the US and Iran’s fragile ceasefire, but up from 5.3% over the week to 1 March.

High inflation expectations could drive up interest rates. In February, the Reserve Bank of Australia (RBA) said that its plan to tackle inflation relied on stable inflation expectations.

“We think if we can bring the positive output gap ... down to zero, then that will help to bring down [inflationary] pressures and we will bring inflation down with it, provided inflation expectations stay anchored,” RBA Governor Michele Bullock said at a press conference on 17 March.

Futures prices indicate that there is a 76% chance that the RBA lifts interests rates from 4.2% to 4.35% at its next meeting on 5 May, according to the Australian Stock Exchange.

By Avinash Govind