‘Worst news’: Aussies given nightmare warning high petrol prices are here to stay
Aussies have been given a nightmare warning on petrol prices — adding further pressure amid the cost of living crisis.
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Aussies will keep feeling the pinch at the petrol pump, with warnings that eye-watering hiked prices will continue throughout the rest of the year.
An NRMA spokesman said motorists will very likely see record breaking prices continue after Sydney recorded an all-time high last week — when the average price of a litre of unleaded petrol hit a whopping $2.22 a litre.
“Sydney has already broken its record, we’re probably going to do it again at the next high point of the next cycle,” NRMA’s Peter Khoury told 2GB radio on Wednesday, adding Sydney isn’t the only city which can expect never-before-seen prices.
“Brisbane’s average is currently about four cents above the wholesale price. So it is falling in Brisbane and it might fall another cent or two hopefully. And then it jumps and when it jumps, it’s likely that Brisbane will also break its record.”
Mr Khoury said a number of global factors are to blame for the skyrocketing prices.
“Russia, Saudi Arabia, OPEC, [the Organisation of the Petroleum Exporting Countries] have come to an agreement that they’re going to withhold production levels with whole supply, which artificially puts up the price,” he said.
In an “unusual move” for OPEC and Russia, he said the cuts to production have been earmarked to continue throughout 2023, putting more pressure on Aussies amid the cost-of-living crisis.
“They would not normally call that shot so far out. But we’ve been warned that these cuts are going to remain now until Christmas. And that just is the worst sort of news for families who have been struggling this year.”
Mr Khoury said any sort of “meaningful relief” will only come from a drop in oil prices.
“We have been subjected to higher than usual prices now for about two years,” he said.
“During Covid, we saw oil prices plummet when the whole world went into lockdown, and there was no demand for oil or practically no demand whatsoever.
“Since then, we’ve come out of lockdown. Demand increased and that inflationary pressure saw prices go up. Oil producing countries decided to cash in — having not made much money over Covid.
“And then Russia invaded Ukraine, with Russia being the second largest producer of oil through the global markets, throwing that into absolute chaos. And to be honest, it’s never really recovered.”
Motorists are advised to shop around for the cheapest fuel prices in their area, with drivers encouraged to check the NRMA app or the government’s fuel check website, for those in NSW.
Originally published as ‘Worst news’: Aussies given nightmare warning high petrol prices are here to stay
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