The Singapore Tapas price, which is used by Australian petrol distributors to set wholesale prices, hit a record high of $124 a barrel yesterday.
The RACV was quick to note that given the increasing cost, petrol prices could climb by another 5c as early as next month, resulting in almost $1.60 a litre at the pump.
"There is long-term upward pressure on petrol prices and Australians, like motorists around the world, can expect to pay more. Petrol prices are rising, and are expected to continue to rise, but not because of collusion or price gouging, as our critics suggest,'' Caltex chairman Elizabeth Bryan told shareholders today at the company's annual general meeting in Sydney.
With some analysts already estimating the price of fuel to reach the $2 mark in 12 months time, just how much more will Australians take before downgrading to small capacity or diesel engines?