‘Worst to come’: Urgent warning as petrol prices creep toward record highs

Australians are tipped to be out of pocket at the bowser as petrol prices soar, with an urgent warning much worse will come this week.

Petrol prices across capital cities are tipped to hit record highs and one expert warns the “worst is yet to come”.

NRMA’s Peter Khoury issued the grim warning on Thursday morning while speaking to Sunrise.

“It’s terrible and it will get worse,” he said.

“Unfortunately we are genuinely concerned that the worst is yet to come and as you go across the country (prices) in all of the capital cities are heating up and unfortunately pretty much all of them are likely to break a record over the next week or so.

“We are bracing ourselves for the worst in Sydney to happen in the next few days.”

In Sydney prices have soared by more than 10 centres a litre in just three days which is a huge shock for drivers after record lows during the midst of the pandemic.

Mr Khoury predicts the cost of filling up will surpass $1.70 per litre across Sydney.

“It’s particularly challenging for families coming out of lockdown,” he said.

Prices could pass $1.70 a litre in Sydney. Picture: Christian Gilles / NCA NewsWire

“You finally get to get in the car, head out and drive around and unfortunately what we’ve come into (are) these dramatically rising prices.”

The price hike is a product of global oil prices which have triggered the cost of filling up to soar.

Mr Khoury explained oil prices have been steadily rising throughout the year.

On Monday, US crude jumped by more than two per cent to a seven-year high of US$81.50 (AU$111) a barrel.

That surge means that since the end of last October, the cost has skyrocketed by more than 120 per cent.

The last time oil exceeded US$80 (AU$109) a barrel was in October 2014.

But oil prices aren’t only to blame. Some companies are likely trying to claw back lost revenue from a dramatic drop in road users during the height of the pandemic.

“More cars are on the road and we’re already seeing it in Sydney. Victoria is not far behind (but) we want to see these margins come in because families are suffering and we want people back on the roads,” Mr Khoury told the program.

Sydney, Brisbane and Melbourne have the most expensive prices. Picture: Noel Thompson

“We want people spending money on the local economy and not at the bowser.”

Sydney, Brisbane and Melbourne are the three cities with the most expensive average petrol prices.

More than a quarter of all fuel retailers in Brisbane are selling petrol for $1.80 per litre. The citywide average is about $1.68.

Nationally that figure stands at a $1.45 cents a litre average for unleaded so far this year. That’s well up on the 122.9 cents a litre last year.

Finder’s Consumer Sentiment Tracker revealed 12 per cent of people say petrol is one of the expenses that causes them the most stress.

The consumer watchdog monitors petrol prices which were largely determined by global factors.