Gasoline in Perth remains on track to break the $ 2-per-liter mark for the second time in two months when the fortnightly cycle hits a new high on Wednesday.
But Motor Trade Association CEO Stephen Moir indicated that lead-free lead would likely rise further amid new uncertainty in global energy markets sparked by fears that Russia is about to cut off natural gas supplies to Finland. In retaliation for the plans of the Scandinavian nation. To join NATO.
On Friday, wholesale gasoline was sold for 178.9 cents a liter, the most expensive since the end of March.
Mr. Moir said the news from Russia – which supplies about 10 percent of Finland’s electricity needs – left him in no doubt that petrol prices would continue to rise.
“I think the wholesale price in Perth will exceed $1.80 per liter; it’s just a matter of how fast,” he said.
“In March (after Russia invaded Ukraine), we had two consecutive weeks where the wholesale price increased by 10 cents per liter.”
Perth’s biweekly petrol cycle means the retail price charged at the Bowser rises to its highest level every second Wednesday before falling steadily over the next 13 days.
However, the high price of wholesale petrol – bought in bulk at the terminal gate by Ampol, Caltex Woolworths, and Coles Express – meant that the average price rose marginally between Saturday and Sunday, from 177.4 cpl to 177.5 cpl.
That is expected to fall to 177.3 cpl on Monday and is normally expected to fall to its lowest point on Tuesday before rising significantly on Wednesday.
The last two petrol cycles have led to price increases of more than 26 cpl – and Mr. Moir said he would be surprised if the bowser price stayed below $2 a liter on Wednesday.
Camera IconPetrol in Perth remains on track to break the $2 per liter mark for the second time in two months as the biweekly cycle hits a new high. Credit: Ian Munro/The West Australian
“Unfortunately, people have to brace themselves for that,” he said.
“What will scare them is that when the temporary fuel tax halving ends in September, gasoline will increase by about $2.30 a liter.”
Halving fuel taxes was a key part of the Morrison government’s March budget, which immediately saved motorists 22.1 cpl on the price of petrol and diesel.
However, the cut is only for six months and is expected to expire in September – at which point the fuel price will rise by 22.1 cpl almost overnight.
Before the tax cut, the average price of gasoline in Perth hit an all-time high of over $2.12.
As the conflict in Ukraine shows no sign of a resolution before September, Mr. Moir said there is every chance that global oil prices will remain high well into the future.
“If the excess cut is not maintained after September, we could easily see prices above $2.30 per liter in Perth,” he said.
