Perth’s average petrol price has been tipped to once again break the $2 per litre barrier next week — just days before voters head to the ballot box for the May 21 election.

The surging price comes despite the Morrison Government temporarily halving fuel excise as a key plank of the cost of living-focused Budget handed down in March.

The wholesale cost of petrol has jumped nearly 20¢ in the past three weeks amid lingering uncertainty over the war in Ukraine and reports the European Union is finalising plans to phase out the importation of Russian oil.

The value of the Australian dollar has also tumbled against the greenback in that span, further pumping up the price of oil which is traded globally using US dollars.

The average retail price of petrol in Perth will decline slightly to 179.7¢ per litre on Tuesday and would ordinarily be expected to continue to fall until next Wednesday — which is the next peak of the fortnightly cycle.

The average retail price of petrol in Perth will decline slightly to 179.7¢ per litre on Tuesday and would ordinarily be expected to continue to fall until next Wednesday — which is the next peak of the fortnightly cycle.
The average retail price of petrol in Perth will decline slightly to 179.7¢ per litre on Tuesday and would ordinarily be expected to continue to fall until next Wednesday — which is the next peak of the fortnightly cycle. Credit: Kelsey Reid/The West Australian

But with the wholesale price reaching 175.1¢ per litre on Monday — the highest level since the end of March — Motor Trade Association chief executive Stephen Moir said it was inevitable bowser prices would rocket to $2 next week.

“It has to be at least that much,” Mr Moir said.

“We have an ongoing crisis in the Ukraine and the world is still recovering from COVID, so demand is high which is putting upward pressure on oil globally.”

In its daily economic analysis on Monday, WA Treasury Corporation noted the price of Brent Crude oil had reached nearly $US112.

“Brent futures are now at the highest level in nearly a month,” the note said.

“This came after the news that, in March, OPEC+ produced 1.45 million barrels a day less than implied from their increased targets.

Extracted in full form: Perth petrol: Price tipped to smash $2 again just days before federal election 2022 | The West Australian

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