Petrol prices jump in Adelaide, but cheap fuel expected to remain for rest of year
The days of sub-$1 petrol aren’t over, the RAA says, despite unleaded soaring as high as 145 cents per litre this weekend, in what is one of the biggest spikes since the beginning of the COVID-19 pandemic.
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Adelaide has seen one of the biggest petrol price spikes since the coronavirus pandemic hit the state, but there’s still good news for motorists.
RAA spokesman Mark Borlace said, while petrol around town has soared as high as 145 cents per litre, the days of sub-$1 fuel are far from over.
A recent jump in crude oil prices caused a sharp spike at the bowsers on Sunday – but the peak period is only expected to last for 10 days.
Before the pandemic hit, the peak usually lasted between three to six weeks each cycle.
“The spikes are getting bigger, which is going back to their old behaviour, but what isn’t consistent with the old behaviour is the peaks have been a bit shorter – around 10 days,” Mr Borlace said.
“It is good for consumers, because a lot of people can make a tank of juice last 10 days.
“If you buy at the cheapest, there’s a good chance you can use that tank to get you to the next cheapest.”
Once the peak is over, Mr Borlace believes prices will come crashing back down to around the $1 mark.
“The Arabs and the Russians are getting on a bit better, but we still don’t expect world crude prices to rise too much in the next quarter, or maybe even for the rest of the year,” he said.
“Until planes start flying regularly and create that demand we’re still going to see an oversupply, which will depress prices.”
Compare the Port Rd pair - but cheap fuel anywhere could disappear soon, as motorists are slugged with the biggest price spike since COVID hit @9NewsAdel pic.twitter.com/lk8gw6LBod
— Tom Angley (@TomAngley9) June 21, 2020
According to price tracking app PetrolSpy, most major petrol stations were selling unleaded for 141.9 cents on Sunday.
There were still some stations in the northern and southern suburbs holding out and selling for 99 cents.
Mr Borlace said Sunday’s price spike was one of the biggest since the pandemic hit SA.
“Most of (the spikes) have been tentative 20-30 cent spikes, but I reckon 45 today was probably the largest we have seen in the last three months.”