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Australian Petrol Prices Likely To Remain High For Some Time

Nationwide, the average price of unleaded petrol has gone up by 15% over the past six months. Taking it to $1.70 a litre. 

Petrol prices are on their way to reaching historic record highs, due to various factors around the globe. Russian and Ukraine tensions, the impacts of Covid plus an artificial downward pressure on oil supply, have all contributed to driving petrol prices to record levels.

Talking to the Sydney Morning Herald, KPMG chief economist Brendan Rynne said Australia’s petrol prices were likely to remain high for some time as rises in international oil prices took at least a fortnight to flow through to Australian supply chains.

“We break our economy into 114 different sectors, and oil is across every single one of them,” Dr. Rynne said.

“When you get an increase in the price of oil, it gets passed through to every business and every consumer – that’s why price increases in oil act like an increase in taxes.”

The longer the price spike is maintained, Dr. Rynne said, the “more entrenched the feeling of inflation becomes at the consumer level and the business level”.

Nationwide, the average price of unleaded petrol has gone up by 15% over the past six months. Taking it to $1.70 a litre and not looking to drop soon.

With these increases, it’s no surprise that more Australians are considering buying their first electric vehicle. A new report from Carbar found that 34% of Australian’s are considering buying an electric vehicle in the next two years to avoid the petrol pump.