Motorists are about to be hit with more pain at the petrol bowser, with crude oil hitting a seven-year high on Monday.
Commonwealth Securities senior economist Ryan Felsman said oil prices had risen for eight successive weeks on market expectations that crude demand would outpace supply as the global economy rebounds from COVID disruptions.
He said escalating tensions between Ukraine and Russia were also driving up prices.
“Rising geo-political tensions in Eastern Europe could be the major catalyst needed to justify crude oil’s potential move above US$100 a barrel,” Mr Felsman said.
The Australian Institute of Petroleum said that the national average retail unleaded petrol price had risen by by 5.1¢ in the past week to a fresh record high of 176.9¢ a litre.