PETROL is expected to stay at record levels for at least the next fortnight and could go even higher after crude oil prices yesterday burst through $US140 a barrel.

With unleaded prices in major cities hovering at a record average of $1.66 a litre this week, experts says consumers are unlikely to receive any immediate respite.

David Cumming, government relations manager for the RACV motoring organisation, yesterday predicted prices for unleaded petrol would stay between 160c and 170c for the next fortnight, when the latest spike in the oil price could push them higher.

The average price of 165.9c a litre across all capital cities on Thursday was the highest ever recorded and compares to May’s average price of 147.3c a litre.

Fuel monitoring group Motor Mouth reported yesterday that the average price of fuel at 3pm was 165.9c a litre in Sydney, 167.4c in Melbourne and 166.7c in Adelaide. Brisbane and Perth were lower, 157.6c and 159.4c respectively.

The situation for diesel was worse. In Darwin yesterday it was selling for 188.9c a litre and, according to Shell, it was just below $2 in some remote West Australian towns.

Truck driver Gavin Rafter from Palmerston outside of Darwin, yesterday put $403.47 worth of diesel into the tank — and that was for only half a tank. “We’re paying a bloody lot,” he said.

“You notice it everywhere. Groceries are getting dearer, everything. The politicians should have a go at fixing the problem, they’re not showing any sign of doing that so far.”

Mr Cumming said the Government was “continuing to ignore the plight of the motorist and taxation is the only way prices can be brought down”.

“Motorists in Melbourne paid an average of 53.1c a litre in tax this week, including the unconscionable tax on a tax, the GST placed on excise,” he said.

Federal Family First senator Steve Fielding joined the attack this week, accusing the Rudd Government of outrageous profiteering from the higher prices and being “drunk on petrol tax”.

The Senate set up a wide-ranging inquiry into the impact of higher petrol prices on families, farmers and tourism on Wednesday. But the reporting date is October next year.

Internationally, crude oil reached a record $US142 yesterday. Chakib Khelil, president of the OPEC group of oil-producing nations, has predicted prices could rise to between $US150 and $US170 a barrel over the next few months — pushing petrol prices in Australia towards $2 a litre.

Business — Page 31

PUMP PAIN

Prices yesterday

Sydney ……. 165.9

Melbourne … 164.7

Adelaide …… 166.7

Brisbane ….. 157.6

Perth ………. 159.4

Darwin …….. 188.9

Hobart ……… *161.9

* Shell price

Credit: John Stapleton