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SYDNEY - Average petrol prices could hit the $1.50 ($1.72NZ) mark within a week and an interest rate rise could follow, after world oil prices soared to US$100, ($130.78) says motoring group NRMA Motoring & Services.
Oil prices soared to US$100 a barrel for the first time ever last night, as global demand for oil and petroleum products continued to outstrip supplies.
The rise was attributed to the surging economies in China and India, and to political tensions in oil-producing nations like Nigeria, Iran and Iraq.
NRMA president Alan Evans today said the price of petrol could rise by five to seven cents over the next week, pushing average prices above $1.50 ($1.72) per litre.
In Sydney the average is currently $1.44, ($1.66) with reports of prices already exceeding $1.50 ($1.72) in some suburbs.
"It's quite a hike that is going to occur - at least somewhere between five to seven cents on top of what they'd be now," Mr Evans told AAP.
"The rule of thumb is that for each dollar increase in the price of a barrel of crude (prices increase by) about a cent at the pump.
"Your average is going to come up around the $1.50 mark, while in the country, you're going to see them come up to the mid-$1.50 (range)."
Mr Evans said the effects of the petrol hike would be severe, not just for motorists, but for the broader Australian economy.
"My worry is that not only will it hit us at the pump, but it is going to feed inflation and then come through to interest rate rises," he said.
- AAP
