Petrol prices are predicted to rise to all-new levels in NSW in the near future, especially as Middle East oil prices increase. The NRMA calculates the annual fuel bill for the family car could rise by up to $2000, depending on the car and location.
The NRMA says Australian motorists are always left up in the air when it comes to fuel prices as tension in the Middle East governs control. It has even called on the Federal Government to look into new strategies when it comes to depending on oil. President of NRMA, Wendy Machin, said in a recent News Limited report,
"A couple of years ago we would have said $2 was alarmist, but in mid-2008 prices were close to $1.70 and 18 months before it was $1.10, a jump of 60c in that short time."
"At the moment $1.50 is fairly average at the bowser and we have this strong Aussie dollar well on parity or above that. So it is not unrealistic at all if we see continued strife in the Middle East and the dollar falls that we would be getting up to around $2 a litre."
Meanwhile, petrol commissioner Joe Dimasi has said that if it weren't for Australia's strong currency at the moment, fuel prices would be even higher. However, he did say that a $2/litre cost in the near future isn't out of the question.
According to Commsec economist Savanth Sebastian, the cost of fuel actually makes up the biggest weekly purchase for families. He says the current average is up $35 compared with this time last year, to $200 per month. This means families are now paying around $2400 per year on petrol. If prices rise to $2/litre, that figure could rise to well over $3000.