A surge in fuel costs is the results of a "good storm" of things, in keeping with new Treasurer Jim Chalmers.
Wholesale fuel costs have spiked up to now week, with fears the electrical energy community on the east coast wouldn't have sufficient provide to maintain properties and companies powered.
And the bounce will seemingly be mirrored within the subsequent electrical energy payments despatched out to Australians.
So what is the motive for the bounce in fuel costs?
World elements
The most important issue behind the surge in fuel costs is the warfare in Ukraine.
The only largest fuel exporter on the earth is Russia, which has been hit with huge sanctions.
Unwilling to purchase from Russia, many international locations are wanting elsewhere, and paying extra for it.
Inflation and provide chain bottlenecks are additionally contributing to the excessive international costs.
The chilly snap
After a gentle autumn, winter has arrived with a vengeance throughout Australia.
And as a consequence, Australians are utilizing much more electrical energy.
That is coming from heaters, electrical blankets and particularly air conditioners.
And on colder mornings, persons are extra prone to spend a little bit longer in a pleasant sizzling bathe.
Extra electrical energy demand means extra fuel must be burned in energy vegetation.
The coal scarcity
The fuel scarcity is made worse by a scarcity in coal.
Coal costs have spiked in current months, because of the warfare in Ukraine.
And outdated coal-fired energy stations have been struggling to keep up a gentle output of electrical energy.
And the most important coal plant within the nation, Eraring within the NSW Hunter Valley, has had problem sourcing sufficient coal to burn.
When the coal vegetation go down, fuel vegetation make up a lot of the shortfall, that means extra fuel is burned.
Exports
Australia extracts sufficient of its personal pure fuel to produce its personal wants very simply.
However being a part of a worldwide market, a lot of Australia's fuel is exported.
Fuel provide may be ensured if the federal government invokes the Australian Home Fuel Safety Mechanism.
However Vitality Minister Chris Bowen has rejected the suggestion the mechanism can be a direct resolution to the nation's fuel scarcity.
"It can't come into drive till 1 January subsequent yr, even when it was pulled at this time," he stated.
"It's not a short-term reply."
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What is going to this imply for energy costs?
The fuel scarcity ought to imply energy costs will go up, however not by as a lot because it might, Bowen has stated.
"Fortunately, round 80 per cent of fuel contracts are performed over the long term," he stated.
"It's not but, in that regard, impacting on retail costs.
"It may very well be lots worse."
He warned it could not get higher immediately.
"Extra renewables places downward strain on vitality costs," he stated.
"The Matt Canavans of this world are on the market saying that is in some way renewables' fault.
"That is coal-fired energy outages."