Petrol prices are expected to rise by at least 11 cents in the coming week as the Australian dollar falls.
The RACQ is predicting that unleaded fuel prices will go as high as $1.51 per litre within days.
Jayd Mahady Reports.
The RACQ says a change in Brisbane’s fuel cycle will mean an increase in prices this week of more than 10 cents a litre.
Lynda Schekoske, RACQ: “What that means is motorists are going to be feeling it in the hip pocket. If they miss the bottom of the most recent cycle it’s going to cost them at least another $7 to fill up the tank.”
She says the current weekly cycle will be extended to a price cycle of about 12 days.
Lynda Schekoske, RACQ: “It’s very hard to know why the cycle’s different, obviously the vast majority of motorists do live in the south-east corner and obviously the fuel retailers want to make sure their maximising the opportunity for profits.”
Some motorists were shocked when they heard of the predicted price rise.
Vox 1: “I think it’s inappropriate, I don’t think it’s necessary, it’s just making oil companies even richer.”
Vox 2: “I’m shocked. I thought they should go down not up, yep, that’s pretty high.”
With oil prices on the rise, it’s clear that motorists will be copping the brunt of it. QUT News contacted the Associated Institute of Petroleum and several other retailers all of whome were unwilling or unavailable for comment.
Despite the price rise predictions, at least one economist says the weakening australian dollar will not significantly effect fuel prices.
David Halliday, Macquarie Bank Analyst: “It’s fallen about five per cent in the past week and a half, but luckily enough for petrol users the oil price has also fallen by around five to six per cent, so the net effect at the pump isn’t great.”
However, the RACQ believes the prices will rise and it advises motorists to shop around to avoid filling up mid-cycle.
Jayd Mahady, QUT News.