Deakin University professor Vlado Vivoda said a lot hinged on the US dollar and Australian dollar remaining stable. He said if the Australian dollar weakened, prices could soar even higher.
Could cuts to the fuel excise tax work?
Patrick said the federal excise of 44.2 cents per litre was a major component of fuel costs.
“The average motorist paid about $775 in fuel excise in 2021, based on approximately 35 litres a week in petrol consumption,” he said.
He said governments should focus on supporting electric vehicle uptake and clean energy generation to reduce Australia's reliance on volatile global energy markets.
How to get cheaper fuel
Some states and territories have mandatory fuel prices databases but there are also third-party apps populated with crowdsourced data.
So why are petrol prices going so crazy?
Vivek Dhar, CBA mining & energy economist, said bans on Russian oil would exacerbate existing challenges for Russian oil imports.
Dhar said existing sanctions had frozen about 70 per cent of Russia's oil exports.
“So, because of that, you're really seeing oil trade out of Russia impacted,” Dhar said.
He said people expected things to settle over the next few months but the threat of an oil embargo meant commodity trade financing was going to be “very challenging”.
Vivek also expected petrol prices in Australia to keep rising, estimating a litre of fuel could cost around $2.40-$2.45 if the price of oil reached US$150 a barrel.
Global oil markets should eventually stabilise
Vivoda said the US was mainly an oil exporter and did not import much Russian oil.
He said Asian and European countries were the biggest importers of Russian oil, including China - Russia’s biggest customer. He said China was unlikely to stop importing Russia’s oil.
Vivoda expects the market to rebalance itself eventually but it will need extra supplies from petroleum reserves as well as existing producers.