The two factors fuelling Australia’s skyrocketing petrol prices

Fuel prices are reaching record highs in Australia, with the price per litre surging over $2 in some parts of Melbourne.

CEO of the Australasian Convenience & Petroleum Marketers Association, Mark McKenzie, says two factors explain the skyrocketing price.

He says the wholesale petrol price fell to 84 cents during lockdown, and it has doubled since then.

“That’s largely due to the fact that I can’t turn a refinery off and on like a light switch,” he told Ross and Russel.

“I have to wind it up and wind it down, so all the global fuel refiners are being quite cautious in predicting how fast economies will recover, and they’re getting it consistently wrong, which is effectively putting this price up.”

The Russia-Ukraine crisis has also driven up the wholesale price by about 20 per cent since early December.

“The wholesale price at the moment is $1.79, that’s the price the service stations pay for the fuel to be delivered to their site,” Mr McKenzie said.

Press PLAY below to hear more about why petrol prices are skyrocketing