Australia could be forced to ration fuel in weeks: Expert issues warning as Strait of Hormuz is shut

• Aussies warned of fuel rationing in weeks

Australian drivers have been warned that fuel rationing could be brought in as early as September if the Strait of Hormuz remains closed.

MST Financial senior energy analyst Saul Kavonic sounded the alarm on Wednesday, claiming the stakes were much higher than they were a few months ago.

'If the Strait remains closed, then by September, the risk that Australia will have to pursue some form of demand management or rationing grow significantly and, to give it a magnitude, it's probably two to three times the risk of what we saw in March and April,' he told the Herald Sun.

'Australia's fuel stock is actually higher than it was prior to the war, but they're still very low by global standards.' 

The Strait of Hormuz has been closed once again following renewed strikes between the US and Iran last week.

The latest exchange caused global oil prices to reach US$90 a barrel overnight on Monday. 

Mr Kavonic warned the recent closure of the Strait of Hormuz would hit global supply harder than the first time it was closed, in February. 

He argued that countries were still able to access oil reserves, but that the supply had diminished over the following months.

'So far we've been living off the oil market credit card,' he said.

'We've only managed to get through the last few months by drawing on the stocks that we have, so we're on borrowed oil.

'And that credit card will max out within a few months if we continue to borrow the way we have because the Strait remains closed.'

Mr Kavonic said the countries that suffered the most throughout the year were developing nations.

'A lot of other countries have had demand rationing measures put in place and in fact, that's the reason we've got through this,' he said.

'Now, what happens over the next few months if the Strait remains closed is, our ability to continue to borrow oil stocks drops and therefore, the amount of rationing that has to happen around the world will increase.

'China and South Asia have already reduced their demand a lot and it's unclear they could do that much more.'

Prime Minister Anthony Albanese said his government was 'closely' monitoring the Iran conflict.

Australia currently has 46 days worth of petrol. 

'What that means is that we currently have 6.5billion litres of fuel in Australia in total, across all fuel types, which continues to be more than we had at the start of this conflict,' Albanese said.

In June, Albanese extended the fuel excise cut for another month.

The flat-rate tax was initially cut by 32 cents per litre and was due to end on June 30. 

Albanese decided to extend the fuel excise cut into July, but slashed the discount that would be available to drivers.

As a result, petrol and diesel are 16 cents per litre cheaper than usual until 2 August, cutting the cost of a 65-litre tank by about $11. 

In addition, the Heavy Vehicle Road User Charge has been reduced by 16 cents for the same period to help truckies keep Australia moving.