Petrol to soar to an average above $1.60 a litre, says NRMA

Motorists are being urged to get to the bowsers quickly with petrol prices about to climb to an average that will hit drivers in the hip pocket.

Sydney motorists will start to feel the ugly hangover from a cheap year of fuel prices with petrol about to soar across the city.

Fuel experts from the NRMA have warned drivers in the Harbour City to fill up now before petrol prices climb from an average of $1.41 a litre, which is up 5 cents from last week, to an estimated $1.62 in coming days and weeks.

“We are at the beginning of a new fuel cost cycle,” NRMA spokesman Peter Khoury told NCA NewsWire.

“We enjoyed cheap fuel for most of last year due to less global demand, but that is about to change, unfortunately, for motorists.”

The price hike is a result of Singapore Mogas 95 – the benchmark that determines Australian fuel costs – trading at about $80 a barrel, a 21-month high.

The strengthening of the Aussie dollar as the economy recovers from Covid-19 and increased demand as more people return to offices are also driving up prices, according to Mr Khoury.

Across Sydney, unleaded 91 prices are beginning to soar in selected service stations, according to NSW government website fuelcheck.nsw.gov.au.

Fuel prices are set to rise across Sydney. Picture: NCA NewsWire / Emma Brasier

In Penrith, Caltex and 7-Eleven in select locations are charging more than $1.75 a litre, while the same price has been noticed at service stations in Gymea, Campbelltown and inner Sydney.

That is likely because those stations have already anticipated the spike.

Mr Khoury said motorists should hit the bowsers soon because other Sydney service stations were likely to follow suit.

“Fill up now if you are in Sydney because they are just going to get worse, and do your research because the gap between the cheapest and most expensive is massive,” he said.

The most expensive petrol in Sydney at the moment is $1.76, while the cheapest is $1.19.

“Get on the NRMA app and check the cheapest prices in your local area because shopping around will get you a better price,” Mr Khoury said.

“We don’t see anything that indicates prices will return to under $1.40 in the near future and that will continue for the next little while.”

Originally published as Petrol to soar to an average above $1.60 a litre, says NRMA