Sydney records highest average fuel price, but the worst may be yet to come

Sydneysiders may be enjoying their new-found freedoms, but it comes as fuel price averages hit record highs across the city.

The average cost of unleaded petrol in the NSW capital is currently sitting at $1.732 per litre, according to website PetrolSpy – topping the record of $1.695 reached in the lead up to the 2008 Global Financial Crisis.

But the worst of it may be yet to come, with Brent crude oil breaking through resistance of US$80 per barrel today to highs of US$83.80 at the time of writing.

Brent crude has experienced a 14 per cent rise over the past month, with some industry commentators predicting oil could hit US$100 a barrel within months.

In September, Bank of America Global Research said it could bring forward its price target of US$100 a barrel if demand increases, according to a report from Reuters.

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While there is a delay between oil being refined into petrol and finding its way to your local bowser, the Australian Competition and Consumer Commission says there is a visible correlation between the price of crude oil and the cost of petrol.

“What we are experiencing in Australia is a flow-on effect of higher international crude oil and refined petrol prices,” ACCC Chairman Rod Sims said in July.

If Brent crude does rise to $100 per barrel, a relative percentage increase would mean $2.25 per litre for regular unleaded.

But despite the record high average price this week, the ACCC released a report recently showing fuel prices in Australia’s five largest cities fell to a 22-year low in late 2020 and early 2021 when adjusted for inflation.