The NRMA has warned service stations that oil tanker attacks in the Middle East do not excuse sudden hikes at the bowser – and prices need to drop immediately.
Petrol prices across Sydney lifted suddenly late last week following Thursday’s attacks on two oil tankers in the Gulf of Oman.
NRMA spokesman Peter Khoury told 7NEWS.com.au that although the petrol price cycle was heading towards an increase, the rapid jump was very sudden, unjustified and out of step with wholesale prices.
“There is nothing in world oil prices to justify what we have seen,” Khoury said.
“They were going up because of the price cycle but they spiked bigger than anything that could be justified compared to the wholesale price.
Quite absurd
“Almost half the service stations we monitored were at 165.9.
“What we saw was quite absurd, the gap between wholesale and retail (prices) is about 33c but with the higher margin service stations it’s well over 40c and that is way too high.
We’re up a lot higher than we need to be.’
“We are up a lot higher than we need to be and it has to come down quickly,” Khoury said.
Prices to stay
But Commsec senior economist Ryan Felsman told 7NEWS.com.au higher prices were set to continue.
“We are expecting to see prices around these levels this week and into next,” he said.
He told 7NEWS.com.au the discounting cycle had ended very abruptly and service stations may have been prompted to lift prices quicker than usual because of turbulence in the Gulf region.
However, Felsman said instability in the Gulf should not have had any effect and would “take a while to flow through” to the bowser price.
“The bigger issue is two things, firstly the OPEC supply cuts still in place … (and) disruptions in Venezuela and other countries such as Nigeria,” Felsman said.
“(But it could affect local prices if) we see tankers blowing up left, right and centre (in the Middle East) which is unlikely because the US will intervene.”
Tensions mount
On Tuesday, the US announced it was sending an extra 1000 troops to the region amid increasing tensions with Iran, which it blames for last week’s attacks and four more last month.
Iran denies any involvement in the attacks.
But the US acting defence secretary Patrick Shanahan accused Iran of “hostile behaviour”.
“The recent Iranian attacks validate the reliable, credible intelligence we have received on hostile behaviour by Iranian forces and their proxy groups that threaten United States personnel and interests across the region,” Shanahan said in a statement.
On Tuesday, the US Navy distributed images which it said showed Iranian forces were responsible for the attacks.
It followed Iran’s announcement on Monday it would no longer keep to a 2015 agreement on limiting its nuclear ambitions.
Extracted from 7news