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Tony O'Kane | Aug 12, 2009

A 5-CENT INCREASE in the cost of petrol may be on the way as Singapore Mogas - the benchmark for unleaded petrol in Australia - rose to sit just under the US$100-per-barrel mark.

After a brief reprieve late last month when retail prices dipped below 120 cents per litre, the cost of petrol is starting to rise back towards 130 cents.

The average retail price for most states hovered around the 125c mark last week, with South Australia and Western Australia sharing the lowest price of 123.1c and the Northern Territory logging the highest unleaded price of 131.7 cents per litre.

The national average was 124.5c per litre, up 1.9 cents over the previous week.

The present forecast is for petrol prices to climb between 3 and 5 cents over the next two weeks, as future demand keeps oil prices high despite a glut of crude supplies.

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