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‘Fill up now’: Petrol prices hit new $2.24-a-litre record

·2-min read
petrol prices and someone filling up
Petrol prices are about to zoom past the record highs set in March. (Source: AAP, Getty)

Motorists have been urged to fill up now before fuel jumps to an expected peak of $2.24 a litre next week.

Many retailers in the final stages of their fuel cycles are already charging an eye-watering $2.24 a litre, which is even higher than the previous record of $2.19 a litre seen in March.

Compare the Market spokesperson Chris Ford said there were still cheaper deals in Sydney and Brisbane but it was already too late for drivers in Adelaide and Melbourne, where fuel cycles were already in their late stages.

The average price for Unleaded 91 in Adelaide is already $2.14 a litre but only $1.93 in Sydney, with some petrol stations charging just $1.73 a litre in the harbourside city.

"It's important now for motorists to stay in tune with fuel cycles, to make the most of cheaper prices while they can,” Ford said.

“Using fuel apps to sniff out the best deals can also help you save hundreds over the course of a year."

What’s going on this time?

The lack of supply coming out of Russia continues to plague oil markets, Ford said, while China’s re-emergence from lockdowns is also adding to demand.

"It's an extremely volatile market and, unfortunately, supply isn't keeping pace with demand,” he said.

He said oil prices reached a 13-week high on Wednesday, with some traders warning prices could rise to $150 a barrel in the months ahead.

“While other fuel-producing nations are increasing capacity, there are concerns it won't be enough to cover the dearth left by Russia,” he added.

Australians have been insulated from the worst of the fuel hikes by the halved fuel excise tax, which has sliced 22 cents off every litre.

Although the cut to the fuel tax was announced in the 2022 Budget under the Coalition government, the Albanese Government has committed to reinstating the full tax, as planned, in September, which means sky-high prices will be the norm.

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