MOTORISTS should not expect any relief at the petrol bowser for the rest of the holidays, with the price service stations pay for fuel at its highest for more than two years.
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Pump prices in Melbourne had dipped by about 10¢ a litre since a spike a few days before Christmas, to an average of 125.2¢ yesterday, according to the RACV.
But by this morning motorists were paying $1.40 a litre for unleaded fuel, after the Australian wholesale price reached 123.7¢ a litre yesterday. It is a 25-month high.
CommSec's Craig James said motorists should take advantage of any discount petrol offers because the global oil price showed no sign of halting its steep rise as record snowfalls in Europe and the US increased demand for fuel.
He said gains in the Australian dollar had not resulted in cheap petrol because world oil prices had risen faster.
''The only solace for motorists is that when global oil prices were last at these levels, the pump price in Australia was near $1.50 a litre,'' he said. ''If it wasn't for the strength of our dollar, motorists would be a lot worse off.''
The comparatively small margin of 2¢ a litre between wholesale and retail petrol prices suggests that Melbourne service stations are engaging in competitive pricing this week in an attempt to regain market share.
''Motorists are being spared some of the pain for a short period of time because of competition,'' Mr James said. But, he warned, ''that can't last forever.''
Service stations in Epping and Maribyrnong had the lowest petrol price yesterday at 121.9¢ a litre, but prices ranged up to 139.9¢ in other parts of Melbourne.
Spokesman Michael Case said the RACV had been inundated with complaints about high and fluctuating prices, noting that the tradition of Tuesday being the cheapest day to fill up had not applied for some months, adding to motorists' frustration.
