Cost of fuel on the rise in Geraldton as Perth average tipped to breach $2 per litre this week

Geraldton motorists may have had a brief reprieve from soaring fuel prices but petrol is likely to break the $2 per litre barrier soon. And Motor Trade Association chief executive Stephen Moir has warned unleaded is likely to soar even higher amid fresh uncertainty in global energy markets sparked by fears Russia is on the cusp of cutting off its supply of natural gas to Finland in retaliation to the Nordic nation’s plans to join NATO. On Sunday, unleaded was selling for an average 189.4c per litre in Geraldton, up from 176.2c per litre the same time just three weeks ago. The cheapest place to fuel up was United Rangeway, which was selling unleaded for 177.5c per litre. The Moonyoonooka Store had the most expensive petrol at 195c per litre. Unleaded petrol prices in Geraldton soared to as much as 212.8c per litre earlier this year on the back of the conflict in Ukraine before the Federal Government announced temporary fuel excise cuts in its 2022-23 Budget. Mr Moir said the news out of Russia — which supplies around 10 per cent of Finland’s electricity needs — left him with little doubt petrol prices would continue rising. “In March (after Russia invaded Ukraine) we had two consecutive weeks where the wholesale price jumped by 10c per litre,” he said. Perth’s last two petrol cycles have brought average price jumps in excess of 26cpl, with Mr Moir saying he would be surprised if prices remained below $2 per litre in the city come Wednesday. The cost of fuel in regional areas such as the Mid West typically follows suit within four weeks of new Perth cycle prices. Mr Moir said motorists “need to brace” for fuel prices well above $2 per litre when the Federal Government’s fuel excise cuts no longer apply. “What is really going to frighten them is come September when the temporary halving of the fuel excise ends, petrol will be up around $2.30 per litre (in Perth),” he said. Slashing fuel excise in half was a key plank of the Morrison Government’s March Budget, which immediately saved motorists 22.1cpl on the price of petrol and diesel. However, the cut is in place for only six months and due to expire in September — at which point the price of fuel will jump by 22.1cpl almost overnight. With the conflict in Ukraine showing no sign of reaching a resolution prior to September, Mr Moir said there was every chance global oil prices would remain elevated well into the future.