Petrol costs are set to surge to more that $2 per litre across Australia, as the ongoing war in Ukraine sends oil companies into a panic.

It’s best to fill up the tank as soon as you can, after Australia’s international benchmark price, Singapore Mogas, rose to $US126 a barrel on Thursday.

Petrol costs are set to surge to more that $2 per litre across Australia, as the ongoing war in Ukraine sends oil companies into a panic.

It’s best to fill up the tank as soon as you can, after Australia’s international benchmark price, Singapore Mogas, rose to $US126 a barrel on Thursday.

“The sanctions have led to a de facto ban on Russian oil,” Andy Lipow, president of consulting firm Lipow Oil Associates, told CNN.

If traders continue to shun Russian oil, that could drive up prices around the world as competition heats up to secure barrels of crude from other sources.

The sanctions-panic rippling through the oil market joins an already strained supply chain, caused by COVID.

“There is no relief in sight for Australians with the price of regular unleaded to reach 200 cents per litre after the price of oil jumped over $10 a barrel overnight,” National Roads and Motorists’ Association (NRMA) spokesperson Peter Khoury said.

“If these increases are passed on to customers, the average price could rise to 206.9 cents per litre with highs above 215 centre per litre at the high point of the next cycle in Sydney,” Mr Khoury said.

The average prices for regular unleaded 91 fuel across the nation’s capital cities currently ranges from 168 cents per litre to 194 cents per litre, according to Fuel Price Australia.

“The market panic is here,” Rystad Energy senior oil market analyst Louise Dickson said.

“The initial upward price reaction after the conflict in Ukraine started six days ago is only intensifying.”

Current capital city fuel prices

Taking the low Australian dollar into consideration, Mr Khoury says this is the highest Australians have ever paid for fuel.

“Customers will continue to see new record prices set, with average prices soon to be above $2 per litre across most Australian capital cities,” Mr Khoury said.

Here’s where the average prices for unleaded petrol across Australian capital cities sit currently:

Easing the pain

According to new data from Finder, 2.5 million motorists say the cost of petrol is one of their biggest stresses.

“With price hikes continuing to go along with no sign of dissipating at all, it’s really important that Australians look at ways to save money on their petrol,” Finder’s Kate Browne said.

Recommendations to save coin at the bowser include shopping around using apps that locate low-cost stations, and keeping your grocery receipt vouchers to shave cents off each litre when you next fill up.

Engaging cruise control while driving can also reduce your fuel consumption when accelerating and breaking.

The record prices are even leading many to consider making the move to electric vehicles

“When you’re paying record petrol prices, now’s clearly the time to look at the electric vehicle option,” Mr Khoury said.

“We know that electric vehicles are going to play a big part in the transport future of Australia, it’s happening overseas, it will happen here.”

Extracted in full from: Supply panic amid Russian sanctions sends fuel costs beyond $2. Here’s why you should fill up now | 7NEWS

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