A surge in the cost of oil sparked by the Russian invasion of Ukraine has contributed to record fuel prices for Australian drivers with sudden price spikes and volatility likely to stay for some time.
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The price of world oil jumped $10 a barrel as the week before the invasion and is likely to increase this week as the war continues.
Brisbane had seen prices of $2.05c last week and prices at the pump are hovering just below the $2 mark in Mount Isa.
Crude oil prices hit $100 a barrel for the Brent benchmark for the first time since 2014 without the presence of Russia, the world's second largest exporter of oil, in the market the expectation is that fuel costs will continue at very high levels at least until there is more clarity surrounding the conflict.
Fuel industry analysts believe prices could reach $2.10 in metropolitan areas, usually meaning even higher prices in rural and regional Australia.
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However, Australasian Convenience and Petroleum Marketers Association chief executive Mark McKenzie had a more positive view.
"There were big gains on futures as war was declared but then the market took time to reflect and perhaps it was felt that a lot of the risk premium had already been built into the market, so we actually saw Brent futures drop back below $100 (US$100 a barrel)," Mr McKenzie said.
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
