Petrol prices remained steady in Canberra last week despite the national average price increasing by 2.5 percent to 132.6c a litre
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The national increase comes as economists warn the petrol prices could drift higher in coming weeks despite discrepancies in local markets.
According to the Australian Institute of Petroleum, the average cost of petrol in Canberra was 133.4c/l last week – a far cry from the below $1 per litre prices recorded in January.
"If the retail petrol price lifts another 5-6 cents a litre, this will add around $3.50-$4.50 to the cost of filling up the car with petrol," said Commsec economist Craig James.
"Filling up the car with petrol is the single biggest weekly purchase made by most families so the lift in the petrol price constrains consumer spending and consumer confidence."
It is now cheaper to refuel in Canberra than it is in Sydney (136.1 c/l), Brisbane (137 c/l) Darwin (136 c/l) and Hobart (136.6 c/l).
On Tuesday morning, Costco Majura was selling petrol at 126.7 c/l while Coles, 7 Eleven and United petrol stations in Fyshwick were trading at 133.7 or 133.3 c/l.
According to Mr James, motorists across the country may look back fondly on the savings made in previous months.
"At one point, Aussie consumers were saving almost $60 a month on the fall in the world oil price, and, in turn, the lower petrol price. Today the savings are around $30 a month," he said.
"The weaker Aussie dollar, lift in the petrol price and scant real wage gains are all serving to depress consumer confidence and make consumers wary about their purchases – especially the non-essential or discretionary variety."
Petrol prices in Sydney increased by six percent last week – the biggest jump in Australia - while motorists in Brisbane and Melbourne were paying 5.5 and 3.1 cents more respectively.
Melbourne was the cheapest metropolitan city for fuel at 127.4 c/l while Adelaide recorded a price drop of 1.7 cents to 133.4 c/l.
Mr James warned that crude oil prices could increase in response to instability in Yemen and a weaker US dollar.
"Investors remain worried that the conflict in Yemen could lead to a disruption of oil supplies in the Middle East," he said.
Economists are also tipping high petrol prices will lead to a rebound in June quarter inflation figures should they remain high.
"The Reserve Bank is still expected to cut rates in just over a week's time, but there are good reasons to suggest that this will be the last rate cut for now," Mr James said.
