The real reason petrol prices are soaring in Australia – amid warnings it could get even more expensive
Millions of Australians have been told to expect more suffering in Bowser this month as a grim new record was set for the price of petrol in Sydney.
The price of a liter of regular unleaded gasoline rose to $2.20 in Harbor City on Thursday, breaking a previous record of $2.18 in June last year.
It comes as the national average spends a fourth consecutive week above $2 a liter, the Australian Petroleum Institute reports.
NRMA spokesman Peter Khoury told Daily Mail Australia there could be more pain on the horizon for motorists.
“We haven’t seen anything that would indicate that in the short term the circumstances that led to these prices are going to change,” he said.
“There is no indication that the situation will improve. We don’t see anything that suggests (gasoline prices) are going to improve.
The price of a liter of regular unleaded gasoline soared to $2.20 in Harbor City on Thursday, breaking a previous record of $2.18 in June last year (pictured, a woman is filling up in Sydney).
NRMA spokesman Peter Khoury (pictured) said petrol was costing Australians more because countries like Saudi Arabia and Russia were slowing oil production to generate more profits.
Mr Khoury said petrol was costing Australians more because countries like Saudi Arabia and Russia were slowing their oil production in a bid to create more profits.
“They are reducing production levels by several million barrels per day, which is having an immediate effect in Australia,” he said.
“It remains to be seen how long they can afford to do this.”
Mr Khoury said every Australian capital city experiences an oil price cycle and Sydney is currently at the peak of its cycle.
He suspects prices in Melbourne, Brisbane, Adelaide and Perth will soon follow.
“It’s really frustrating for drivers to be exposed to these types of prices,” he said.
“The reality is that everything is more expensive because gasoline is more expensive. Even if you don’t have a car, you will pay for it on the supermarket shelves.
The national average has spent a fourth consecutive week above $2 per litre, the Australian Petroleum Institute reports.
Mr Khoury said every capital city in Australia had a petrol price cycle and Sydney was currently at the peak of its cycle – with petrol now costing $2.20 a litre.
The NRMA spokesperson said while Australians could do little about global factors, drivers needed to be smart when refueling.
“You will always find gas stations cheaper than others,” he said.
The NRMA also recommends that drivers refrain from harsh braking or rapid acceleration and remove any extra weight from their car.
Experts believe the high price of petrol is due to a combination of a weak Australian dollar, production cuts in oil-rich countries and increased demand.
There are also fears that recent flooding in Libya could push up prices.