Further escalation of the conflict in Ukraine could see petrol prices at the bowser soar beyond $2.50 a litre.
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Barely a week ago it was $2 a litre prices at the pump people were worried about but now that seems cheap.
Prices are currently around $2.20 a litre in Mount Isa but experts warn the fuel price escalation is set to continue.
They also said calls to scrap the excise tax would not solve the problem impacting global oil supplies.
On Monday, Prime Minister Scott Morrison played down speculations the Commonwealth would cut taxes imposed on petrol, despite a number of Nationals calling for the excise to be cut at the upcoming federal budget on March 29.
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"These costs of living impacts are real, and the Australian government understands that," he said.
"[But] the budget is in a couple of weeks, and that's when announcements are made about matters in relation to the budget. I don't intend to engage in pre-budget speculation on this matter."
CommSec chief economist Craig James said prices could rise above $2.50 if the war escalates and is pushed out for longer.
He also noted in recent days, east coast capital cities were at the peak of the discounting cycle which had also influenced the price inflation.
"It is basically a Band-Aid type solution," Mr James said in regards to cutting fuel excise tax.
"The major driver, of course, is the global prices and any benefit from cutting the fuel excise would be gobbled up if oil prices continue to march their way higher."
with AAP
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