Petrol prices set to spike by 50 CENTS a litre as smaller stations bump up their prices to meet more expensive retailers
- Petrol prices are set to spike by 50 cents a litre as the price cycle reaches peak
- Large petrol retailers are raising prices as independent retailers wait to follow
- Petrol prices in Sydney have already reached highs of $1.74 a litre on Tuesday
- Motorists are being encouraged to seek out the best price before topping up
Fuel prices are expected to rise by 50 per cent this week as service stations aim to even out the disparity between in costs.
From Tuesday, Sydney drivers can expect to pay as much as $1.74 a litre at the bowser for unleaded fuel, while the cheapest spot in the city is charging $1.24.
In Melbourne prices are also expected to rise to $1.74, while the cheapest station is charging $1.27.
Australian petrol prices have risen over the last week as the current fuel cycle heads towards its peak with Sydney already recording a high of $1.74 a litre by Tuesday morning (stock image)
The price surge has been blamed on the large disparity between service stations and smaller stations increasing their costs to catch up to larger retailers.
Advice to motorists is to shop around.
NRMA spokesman Peter Khoury told Daily Mail Australia there is a ‘massive spread’ in prices, particularly in Sydney, which has seen the city’s fuel price rise by 10 cents a litre in the last week.
‘That spread can exist in just one suburb but it depends on the city because the average will change because each city is in a different stage of the cycle,’ Mr Khoury said.
Mr Khoury said motorists had a chance to save up to 51 cents a litre around Sydney if they were willing to shop around.
‘With the gap around 51 cents a litre which is a huge saving, it is unprecedented, it’s important to shop around,’ he said.
Up north in Brisbane, the cheapest is $1.27 and the priciest $1.76.
Motorists are being encouraged to ‘shop around’ before they buy fuel with a chance of saving up to 51 cents a litre as independent fuel retailers wait to follow the price rise (file photo)
A petrol price cycle is the movement from the low point, known as a ‘trough’, to the highest point, known as a ‘peak’, then back to a ‘subsequent low point’.
It is the result of deliberate actions by petrol retail pricing policies and has no correlation with wholesale costs.
Capital city cycles have increased over recent years and vary from state to state.
Sydney’s last cycle lasted 24 days and Mr Khoury said another cycle is expected by Christmas.
According to data from the ACCC a capital city price cycle can be as short as 14 days to as long as 54 days.
The most recent price trough was seen between November 11 and 13 and will rise steadily until it reaches a peak around the $1.65 mark.
In October the cycle lasted 32 days from the lowest to highest pricing point and the peak price remained for 11 days.