Unleaded fuel price surges to as much as 167.9c a litre

UNLEADED petrol prices in Melbourne have surged to as high as 167.9c a litre — the biggest bowser hit in a decade. But experts say there’s an underlying reason for the school holiday sting, while bargains can still be found at the bowser.

UNLEADED petrol prices in Melbourne surged as high as 167.9c a litre on Monday, in the biggest hip-pocket hit at the bowser in a decade.

About half of the metropolitan petrol stations monitored by the RACV had moved to the new high price by Monday afternoon.

Leading fuel data source MotorMouth confirmed prices at individual sites were the highest since mid-2008, when some outlets sold unleaded fuel for about $1.70 a litre.

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CommSec chief economist Craig James said motorists were feeling the brunt of high global oil and wholesale prices and a weaker Australian dollar, making oil imports more expensive.

“That combination has been bad news for motorists,” Mr James said.

RACV vehicle engineering manager Michael Case said average petrol prices were at a four-year high.

“It’s up to the industry to justify current pricing,” he said.

“Fuel prices have been influenced by an underlying increase in oil prices.

“The increased oil price has a flow-on effect which extends to the wholesale price of refined petrol, and subsequently the prices we see at the pump.”

According to the RACV website, there were still some bargains at the bowser on Monday: the cheapest price on offer was 136.7c a litre.

Bargains could still be found at the bowser, according to the RACV’s website. Picture: iStock

Melbourne’s peak-and-trough fuel cycle — where costs climb, then slowly ease to a discount price, before spiking again — is now in its increasing phase.

The average for unleaded fuel on Monday afternoon was 157.5c — 15.5c above the wholesale terminal price.

Early this month, before the school holidays, the average retail price had reached 157.9c a litre.

Mr James warned there was little sign of any price relief.

A weekend meeting of the Organisation of Petroleum Exporting Countries had “effectively concluded there wasn’t a case to pump any more oil into the market”.

“In the global market it is tight between supply and demand,” Mr James said.

“It means prices will remain generally high.”

He urged drivers to shop around for the best deal, and beware of any retailers trying to edge up their margins.

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