Petrol Price On The Rise, Likely To Keep Going

FOLLOWING A RECENT increase in crude oil prices to an eight-month high of $73.32 a barrel, national petrol prices have hit $1.24 a litre - the highest price in the same period.

Figures from the Australian Institute of Petroleum show that Tasmanian motorists have been hit the hardest, with average prices on the apple isle rising by 2.5 cents to $1.29.

Above: Average Weekly Unleaded Petrol Prices for the 12 Weeks to Sunday, 21 June 2009 (National Average) - Graph by Australian Institute of Petroleum.

CommSec economist Savanth Sebastian, in a recent market update, has warned that the rise in petrol prices is unlikely to reverse course in the near future.

"CommSec expects pump prices to jump by a further five cents a litre in the next fortnight,'' Mr Sebastian wrote in a market update.

"In Australian dollar terms, Singapore gasoline rose from $98.15 a barrel to $98.50 a barrel over the week."

Mr Sebastian pointed to the fact that the last time oil was trading for more than $100 a barrel, consumers were paying over $1.35 a litre.