Petrol prices soar to highest level in almost two years

In some bad news for motorists, a new report has revealed Aussie drivers are now being slugged with the steepest petrol prices in almost two years.

Fuel prices have soared to the steepest level in almost two years, according to a sobering new report.

According to the Australian Institute of Petroleum’s latest weekly petrol prices report, the average price of petrol 154.2 cents per litre in the past week on average.

That’s a steep jump of up 3.6 cents compared with the previous week, and comes even as millions of Australians remain under lockdown as a result of the Covid pandemic.

In the week ending September 12, prices were the highest in the Northern Territory, which saw an average of 161.4 cents per litre.

It was followed by NSW/ACT on 158.1, Tasmania on 156.1, Queensland on 154.3 and Victoria on 152.8.

Fuel was cheapest in Western Australia, with 150.7, and South Australia, with 146.8.

The higher prices are believed to have been driven by Hurricane Ida, which has affected oil supplies from the Gulf of Mexico.

Meanwhile, an analysis of ACCC data by comparison site Finder earlier this year found that Sydney was the most expensive city in Australia when it came to fuelling up.

Fuel prices have reached a 20-month high. Picture: Christian Gilles /NCA NewsWire

It revealed that Sydneysiders could save a staggering $445 in one year by switching from the highest to lowest priced petrol retailer.

And Finder’s Consumer Sentiment Tracker of 29,360 Aussies also shows that 12 per cent say petrol is one of the expenses that cause them the most stress.

Throughout 2020, petrol stress was relatively low, falling to just 7 per cent in December last year. But since then, it has continued to climb, hitting 14 per cent in June.

In the 12 months to June 2021, fuel prices have increased by 27.3 per cent, according to analysis of Consumer Price Index (CPI) figures from the ABS.

In comparison, wages increased by just 1.8 per cent over the same period.

The analysis found the increase in fuel prices will lead to Aussies spending $427 more per year on filling up their cars.

Sydney saw the greatest jump in fuel prices over the 12 months to June 2021, with a CPI increase of 29.1 per cent, followed by Brisbane (28.4 per cent) and Melbourne (27.9 per cent).

Meanwhile petrol prices in Hobart increased by just 14.2 per cent over the same period.

But Finder’s Head of Consumer Research Graham Cooke said there were ways to reduce the pain.

“Apps such as MotorMouth and Petrol Spy help you compare petrol stations and find the cheapest fuel near you,” he said.

“Even just a few cents per litre can make a substantial difference over the course of a year – just make sure you aren’t driving too far out of your way to get it as that defeats the purpose.

“As well as saving on petrol and registration, cheaper cars will typically cost you less in car insurance premiums.”