Analyst warns $2 per litre for petrol could be the new norm

Paying less than $2 per litre for unleaded could soon be a luxury of the past, according to one market analyst.

According to commodities expert David Scutt, wholesale petrol prices in Singapore – where Australia sources the majority of its refined fuels – are up more than 30 per cent in Australian Dollar terms since the beginning of July 2023.

While retail pump prices have risen by as much as 30 per cent in recent months, there appears to be no relief in sight for motorists.

"Wonder when the penny will drop for motorists that the bottom of the fuel price cycle will be ~$2/L for 91 octane given the increase in wholesale costs," Mr Scutt wrote on X (formerly Twitter).

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According to the Australian Automotive Association – the peak motoring group representing the RACV, NRMA, RACQ, RAA, RAC, RACT, and the AANT – households are spending an average of almost $415 each week on transport costs.

That equates to almost 16 per cent of household income spent on fuel, car loan repayments, tolls, public transport, insurance, servicing, tyres, registration and licencing, and roadside assistance.

Sydney residents spend the most, with more than $510 covering transport costs per week, while those in Melbourne and Brisbane fork out more than $500.