In today’s global society, the perks of being intrinsically connected to other countries are plentiful. We benefit from trading resources with other countries. We get exposed to different cultures and learn about the ways of life of others. We can travel quite freely and easily.

But these advantages can sometimes come with a catch: events on the world stage can affect us, here in Australia, even if they’re thousands of kilometres away.

This was a particularly common theme in 2020. We saw it in delayed car production. We saw it in global timber shortages. And we saw it in toilet paper being ‘wiped’ off the shelf, if you’ll pardon the pun.

Now, we’re seeing it happen in rising fuel costs. So, how does a foreign event wind up affecting you at the fuel bowser? The experts at Carbroker.com.au explain.

When Russia invaded Ukraine…

When Vladimir Putin decided to invade Ukraine, he caused our petrol prices to skyrocket, through a couple of simple factors.

Trade sanctions on Russia

Since Russia’s invasion of Ukraine, Australia and the rest of the world have imposed heavy (and necessary) sanctions on Russia’s exports, including oil.

Australia stops buying Russian oil

Russia is the world’s second largest exporter and third largest producer of oil, producing 11 million barrels of oil every day. Since the Australian Government made the decision, along with many other countries, to stop buying Russia’s oil, we’ve had to source our oil elsewhere, driving up the price by a mile.

Crude oil is the key ingredient in petrol

Crude oil, the key ingredient in petroleum, has gone through the roof in terms of price. And since the price of crude oil has skyrocketed, so has the price of petrol. That’s how the Russian invasion of Ukraine has directly affected you filling up your car, costing you almost triple since the early days of the pandemic, when fuel prices could be seen floating around the 84 cents per litre mark.

How to beat the bowser

Though world events have affected Australian fuel prices, you have a couple of options if you want to beat the bowser:

• Take the bus
  Nah, we’ll pass. Next.
• Sit it out and try to drive more economically
  Fuel costs are expected to last until trade embargos are lifted, which could take a while. In the meantime, try to drive as economically as possible.
• Invest in a hybrid
  High petrol prices may only be temporary, but a hybrid is a permanent solution.
• Novated lease
  Entering a novated lease means your fuel costs can be deducted from your payable tax.

Want to put Putin in his place and show him that we don’t need his oil anyway? Talk to the team at Carbroker.com.au. They can help you find the best hybrid or fully electric car at the best price, using their connections to over 2000 car dealerships nationwide. Carbroker can also help score you a novated lease, helping you with the running costs of your vehicle.