Perth petrol: Prices to hit as high as $2.07 a litre amid escalating conflicts in the Middle East

Perth drivers are set to be punished at the bowser on Wednesday with prices for petrol hitting as high as $2.07 a litre amid escalating conflicts in the Middle East that threaten to disrupt global oil supplies.

The average price of Perth’s regular unleaded petrol will jump from 159.3¢ on Tuesday to 188.7¢ per litre on Wednesday, the peak of the weekly price cycle — but higher prices are likely from next week.

EG Ampol on Wednesday will charge an average of $2.07 per litre for unleaded petrol, the most expensive in Perth, followed by Caltex at $2.03 and 7-Eleven at 202.9¢.

The cheapest available is 163.8¢ from Vibe.

Motorists in Albany will have to pay an average of 173.2¢ a litre, while those in Bunbury and Busselton will have to pay 171.6¢ and 171.1¢, respectively.

FuelWatch manager Ben Derecki said global oil and fuel prices were already trending upwards before the weekend, which had resulted in higher local wholesale prices.

“The conflict in the Middle East is expected to further increase world oil and fuel prices this week,” he said.

“Increased international prices have started flowing through to local prices but FuelWatch expects to see the full impact of the higher international prices — so far — over the coming week.”

The Strait of Hormuz — the narrow waterway between the Islamic republic and Oman that handles about 20 per cent of the world’s oil and gas — has been effectively closed as Iran retaliates against the US-Israeli strikes on the weekend.

Treasurer Jim Chalmers on Tuesday wrote to the Australian Competition and Consumer Commission, calling on the regulator to monitor potential price gouging and warned service stations against “opportunistic” increases.

“Unfolding events should not be used as an excuse for retailers to gouge customers or to increase prices opportunistically above and beyond the impacts of events in the Middle East,” he said.

It comes as motoring group NRMA on the same day warned the Middle East conflict had created a surge in wholesale diesel prices overnight, with the fuel critical to sectors like mining, transport, agriculture, commercial and retail in Australia.

NRMA now predicts the oil price shock means regular unleaded fuel will now rise to the low $2 mark this week, as benchmark Brent Crude prices climbed around 8 per cent to $US78.80 since the start of the conflict on Saturday.

In a worst case scenario, it said Premium 98 unleaded fuel could hit a high of $2.28 a litre this week, with the budget E10 unleaded fuel forecast to reach a high of $2.01 at the bowser this week.

AMP economist Shane Oliver says that every $10 rise in global oil prices equates to roughly an extra 10 cents a litre paid by motorists at the bowser.