Motorists have been warned lofty prices at the petrol pump will likely move higher as Russia’s threat to Ukraine and a recovering global economy raise oil prices.
The price of oil has surged since Russian troops raised fears they may invade Ukraine by carrying out drills near the border. The price of Brent oil rose to about $US90 per barrel.
That has meant Australian motorists paying more this week.
On Friday, Perth motorists buying unleaded were paying on average $1.81.
The average price of a litre of E10 in Sydney is $1.72, in Brisbane, it’s $1.70.
Melbourne motorists were paying $1.59 this week, while those in Adelaide spent $1.53. Data based on Motormouth and FuelWatch figures.
Commonwealth Bank commodities strategist Vivek Dhar said the prospect of Russia invading Ukraine worried investors in world markets.
Russia supplies about 10 per cent of the world’s oil and Mr Dhar said the likelihood of the US and allies imposing economic sanctions could affect global supply.
He said the oil price was set to move higher given the tensions.
AMP senior economist Diana Mousina also said motorists could expect petrol prices to move higher over the next few weeks.
The Russia-Ukraine stand-off was one contributing event, Ms Mousina said, and the recovery of the global economy from the pandemic was another.
Oil prices were at their highest levels since 2014, she said, as more people travel and use energy after lockdowns.
“There is no major factor that will lead to a big fall in the oil price in the next six months,” she said.
“Petrol prices will take a large chunk of the household budget.”
Queensland insurer RACQ on Tuesday noted prices of unleaded petrol in many parts of the state topped records from November.
The organisation encouraged motorists to use petrol tracking apps and websites to find cheaper fuel.
The Australasian Convenience and Petroleum Marketers Association and the Australian Institute of Petroleum did not return calls in time for publication.