Gasoline in Perth remains on track to overcome the $ 2 per liter barrier for the second time in two months when the two-week cycle reaches a new high on Wednesday.
But Stephen Moir, executive director of the Motor Trade Association, said unleaded is likely to grow even more amid new uncertainty in global energy markets sparked by fears that Russia is on the verge of cutting off natural gas supplies to Finland in retaliation for the northern country’s plans. join NATO.
On Friday, wholesale gasoline sold at 178.9 cents per liter, the most expensive level it has reached since late March.
Mr Moir said news from Russia, which supplies about 10 per cent of Finland’s electricity needs, left him in no doubt that petrol prices would rise.
“I think the wholesale price in Perth will definitely exceed $ 1.80 per liter, the only question is how fast,” he said.
“In March (after Russia’s invasion of Ukraine) we had two weeks in a row when the wholesale price jumped by 10 cents a liter.”
The two-week petrol cycle in Perth means that the retail price charged on petrol rises to its highest level every other Wednesday before steadily declining over the next 13 days.
However, the increased price of wholesale gasoline purchased at the gates of the terminal such as Ampol, Caltex Woolworths and Coles Express, led to the fact that the average price rose slightly between Saturday and Sunday, from 177.4 cpl to 177.5 cpl.
On Monday it is expected to fall to 177.3 cpl and is generally expected to fall to its lowest point on Tuesday before jumping significantly to Wednesday.
The last two petrol cycles have brought average price jumps in excess of 26 cpl – and Mr Moir said he would be surprised if petrol prices remained below $ 2 a liter on Wednesday.
“Unfortunately, people need to prepare for this,” he said.
“What really scares them is that in September, when the temporary reduction in the excise tax on fuel ends, gasoline will rise by about $ 2.30 per liter.”
Reducing excise taxes on fuel by half was a key element of the Morrison government’s March budget, which immediately saved motorists 22.1 prices for petrol and diesel.
However, the reduction is only valid for six months and should end in September – at which point the price of fuel will jump by 22.1 cpl almost overnight.
Prior to the reduction of the excise tax, the average price of gasoline in Perth reached a record high of $ 2.12.
Due to the fact that the conflict in Ukraine does not show any signs of resolution by September, Mr. Moir said there is every chance that world oil prices will remain high in the future.
“If the excess cuts are not maintained after September, we could easily see prices above $ 2.30 per liter in Perth,” he said.