Wholesale petrol prices to hit $2 a litre

Motorists are being urged to shop around when filling up their car, as prices of petrol and diesel surge across the country.

A failure for a peace deal in the Middle East means the Strait of Hormuz remains gridlocked, putting a fifth of the world’s oil supply in jeopardy, with the growing uncertainty reflected in spiking petrol prices over the last month.

The NRMA has warned wholesale prices rose to 204.4 cents per litre on August 3, and despite falling briefly, they are now on the rise again.

The Terminal Gate Price for regular unleaded petrol has hit 198.0 cents per litre, with the national average price at the bowser having risen by 51.7 cents to 207.1 cents since June 30.

The average price of diesel has risen to 255.1 cents per litre in the same amount of time, a 75.9 cents per litre rise.

Part of the rise has been caused by the end of the federal government’s temporary cut to the fuel excise.

Read more

As it happened: Flash flood on Nepal-Tibet border kills more than 160; At least 35 Australians missing

The tax on petrol was briefly halved by 32 cents, and a reduced discount was in place between July and August, though this ended on August 2.

Prices have been quick to rise, with huge gaps rising between the cheapest and most expensive fuel in Sydney.

According to the NRMA, that gap is currently 70.2 cents per litre, which represents a $38.60 difference in a full 55 litre tank of fuel.

NRMA’s Peter Khoury said Aussies need to shop around to ensure they are getting the best deal, but warned continued high prices could be here to stay for some time.

“Until we finally see an end to hostilities in the Middle East and the reopening of the Strait of Hormuz this uncertainty and volatility will sadly be the new norm, therefore finding the cheapest fuel to fill up will be critical for families looking for cost-of-living relief at the bowser,” he said.

“Shopping around is key, especially if there are independent servos in your area or on the way to your destination. It will save you dollars even amid rising prices.”

He also suggested drivers opt for cheaper, E10 petrol if it was suitable for their vehicles.

Khoury said Aussies should use fuel price comparison apps to try and find the cheapest deal, and reminded Aussies the federal government was supposed to crack down on price gouging at the pump.

“Governments have moved to make it illegal for retailers not to report a fuel price change and that information is available in real-time,” he said.