As the Middle Eastern wars plunge the world’s oil industry into chaos, Central Australia could be sitting pretty.

The Mereenie oilfield, 250 kms west of Alice Springs, produces 300 barrels a day (a barrel is 159 litres), of a purity that allows the crude to be used in many diesel engines without refining.

The Alice Springs News examined the opportunities 10 years ago but “our” oil kept going interstate without politicians batting an eyelid.

The Mereenie operator and part-owner Central Petroleum currently takes the crude to the Port Bonython refinery, selling it at the current international Brent oil benchmark market price.

At the current exorbitant price of US$100 a barrel that is US87c a litre or A$1.22.

MyFuelNT today quotes diesel prices in The Centre as ranging from $2.33 (Dowdy Court, Ciccone) to $3.39 (Tilmouth Well Roadhouse).

The Commonwealth gets a hefty cut, a Federal fuel excise of over 50 cents per litre on diesel, adjusted twice-yearly for inflation (February and August). This, combined with 10 per cent GST, constitutes a significant portion of the retail price. Of course, in times of trouble, the stroke of a pen could change that. 

This article appeared on Alice Springs News on 10 March 2026.