Sydney petrol prices to jump about 50 cents, reaching up to $2 a litre again

Motorists are about to get hit at the petrol bowser again despite the federal government’s fuel excise, with a jump of 50 cents a litre. Here’s why.

Fuel prices are expected to climb back up close to $2 a litre by the end of the week, experts warn.

Motorists are being encouraged to fill up their tanks now as petrol prices are set to leap by 50c across the city.

Retailers are pushing up their profit margins and it’s beginning to pinch people’s wallets again since the federal government’s fuel excise cut was introduced.

Overnight, there was a three cent jump to the national wholesale average price, which is the largest rise since the first week of March this year.

“We’re seeing the signs of the first price increase since the fuel excise was introduced at the end of March and it likely indicates the start of a new price cycle,” Chris Ford, from Compare the Market, said.

Petrol prices are on the rise again. Picture: NCA NewsWire/Dan Peled

“Markets in Sydney and Brisbane have been the first to react, and retailers could now follow suit to take average prices close to $2 a litre once again.

“There’s a 40 cent difference between the cheapest and most expensive Unleaded 91 available in Sydney right now, and there are still some stations still marking at $1.50, which is a saving of $20 if you’re filling up a 50-litre tank.

“(But) it only takes one to set the bar. Other retailers will join them at the 1.91 mark. Their margins have been crunched significantly in the last few weeks. We knew the cycle was going to come.”

BP petrol stations kicked off the trend earlier this week with servos in Mosman and Naremburn charging customers 191.9 per litre for Unleaded 91.

By Wednesday, another 15 petrol stations in Sydney followed suit, bumping up their prices to sit on the cusp of $2 a litre.

Mr Ford said it was only a matter of time people would start to see a rise in the cost of petrol.

He said the fuel excise cut came at a convenient time when the US released some of their own oil reserves, causing a steep drop in the price of petrol and making it more affordable for many motorists.

“It was the case of perfect timing,” Mr Ford said.

“Tapis and Brent crude have both risen in the last week. Tapis has increased seven per cent and Brent 14 per cent … which will flow through the Australian market in the coming week.

“There’s also increasing uncertainty over how China’s harsh lockdown strategy will affect demand, and therefore prices too.”

Motorists are encouraged to use fuel comparison apps like FuelCheck and Simples App to find the cheapest fuel.