The price of petrol is set to surge to a record high of an average $2.09 per litre in Perth tomorrow, with consumer authorities urging motorists to fill up now.
- Petrol prices will surge an average of 30 cents on Wednesday
- Queues are expected at petrol stations ahead of the hike
- The war in Ukraine is contributing to the cost pressures
The metro average on Tuesday is $1.79 per litre, with Wednesday’s price representing a jump of almost 30 cents per litre.
A BP petrol station in Langford will charge the highest rate tomorrow at $2.29 per litre, while the cheapest will be $1.69 at the Perth Airport Costco.
The previous highest record cost was $2.07 per litre on February 23, according to FuelWatch.
The cost of diesel will increase to an average of $1.89
FuelWatch manager Ben Derecki said the price was expected to rise for some time.
“Watch out for the queues, I think there are going to be many queues out there of people trying to top up before these record prices,” he said.
“There are retailers who don’t abide by the price cycle who do keep lower prices.
“If you can’t fill up at the lower price make sure you get out there and hunt them down.”
Ukraine war making prices rise
He said international prices had increased dramatically.
“We’ve got the conflict between Russia and the Ukraine that’s creating instability in the market,” he said.
“There’s also currently some conversations around whether there will be sanctions on Russian oil and gas that might put further pressure on the market.”
He said countries emerging from COVID and increasing travel had increased demand that was not being met by an increase in oil production.
Mr Derecki said prices were going to increase again, but he could not say how long they would be high.
Australian economy could see boost from higher oil price
EnergyQuest chief executive Graeme Bethune agreed there were two things driving limited supply — economies bouncing back from COVID and the geopolitical situation in Russia and Ukraine.
“Russia is one of the world’s major oil producers, and one of the world’s major LNG and coal producers too,” he said.
“The problem is that there’s so much uncertainty around that. Normally high prices will bring on supply but there’s a bit more caution about that now.”
Oil prices could be further impacted by a boycott of Russian products, further decreasing global supply, which could push the price at Australian bowsers even higher.
“I think we could easily get petrol prices of $2.50 a litre,” he said.
Mr Bethune said in terms of the economy, Australia now had more exports linked to the oil price than it had imports.
“An increase in the oil price is good for the economy as a whole, but it’s not good for motorists or consumption,” he said.
Perth motorist Maaz Manik said the price rise was tough.
“I’m going to be going visiting my mum, she lives 40 minutes down south, so I can’t even visit her many times because I don’t want to drive too often,” he said.