Fuel prices hit bottom of cycle but record spike looms ahead of Saudi Arabia oil strike

A drone attack on oil production in Saudi Arabia is yet to send SA’s petrol prices skyrocketing, but experts say a shorter-than-average fuel cycle could lead to a cost spike.

Global tensions over attacks on oil refineries in the Middle East have yet to affect fuel prices in South Australia, but a spike could be looming.

Only days after a drone attack in Saudi Arabia that knocked out five per cent of global oil production petrol prices have steadied at an average of 130.7 cents a litre in Adelaide.

RAA petrol spokesman Mark Borlace said the price had hit the bottom of the regular cycle and was likely to spend several days around the 130c mark.

However, he said it was too soon to rule out an economic flow-on effect from the attacks in the Middle East and the threat of US repercussions.

“Crude oil is bought on a 30-day contract so everything which is on its way to Australia already has its price set,” Mr Borlace said.

“But pricing is as much psychological as anything else. Some companies might raise the prices to reflect what is happening in Saudi Arabia.”

Some petrol stations have already “pulsed” their price more than 30 cents above the average to more than 165.9 per litre.

However, Mr Borlace said this was a normal part of the fuel cycle and it would only become a fuel spike when all major chains and independents had followed suit.

Current petrol prices in Adelaide range from 125.9c to 165.9c.

Rural petrol prices remain high with Port Augusta’s average price topping out at 161.9c.

Originally published as Fuel prices hit bottom of cycle but record spike looms ahead of Saudi Arabia oil strike