Tyre prices set to soar in Australia

The price of tyres in Australia is set to skyrocket, with manufacturers blaming rising oil and energy costs.

Approximately 31 litres of crude oil is currently required to produce a modern car tyre, according to the US Rubber Manufacturers Association – used in plasticisers, synthetic rubber, carbon black, and resins.

In December 2021 a barrel of oil cost $US65.57 ($AU89), however last week peaked at a record $US123.70 ($AU170) – a rise of approximately 89 per cent in just over 10 weeks.

Further, associated energy costs – including transport from factory to retailer in diesel-powered boats and trucks – have spiked sharply in recent months.

As a result, Drive understands the price of tyres from all major manufacturers – including Pirelli, Michelin, Continental, Yokohama, and Bridgestone – could rise by as much as 50 per cent within the next three months.

If the projection is accurate, this would mean a set of four tyres costing $500 today could climb to $750 by June 2022.

"The cost of raw materials and energy are both increasing, with an unpredictable increase in the price of oil ... This is going to inflate the cost of so many industries, including air travel, construction, and unfortunately tyres," a spokesperson for Pirelli in Australia told Drive.

"Pirelli is working hard to mitigate this by reducing the flow-on impact, but a price increase to all tyres this year is to be expected ... We do observe a general trend of cost increases."

It's unclear when prices are likely to recede again, however experts have warned oil costs may not drop significantly for the foreseeable future.

The war in Ukraine and subsequent Western sanctions on Russian exports have been the primary drivers of high energy prices in recent months, and this has triggered record fuel costs in most major countries.

However, inflation has been rife in all facets of the automotive sector over the past 18 months; the cost of new cars has risen steadily amid parts shortages and supply chain issues.