Australian petrol prices have recorded their biggest one week lift in more than seven years, according to the Australian Institute of Petroleum (AIP).
On average the national retail price for petrol rose by 6.3 cents to 144.9 cents a litre, the largest once week increase since September 2005.
Capital cities suffered a larger increase than their regional counterparts, with Melbourne prices surging 11 cents, Sydney and Brisbane jumping 10 cents and Adelaide rising 9 cents. This was in part due to the average regional price being higher the previous week.
CBA economist Savanth Sebastian said that the substantial increase in pump prices was, in large part, due to to the fortnightly discount cycle on retail fuel prices.
"Over the last couple of weeks we’ve had petrol at super cheap levels compared to where the wholesale price was. In fact the daily pump price was actually below cost price, so at some point it had to revert, it wasn’t a sustainable scenario for petrol retailers," said Mr Sebastian.
The wholesale price of petrol had remained largely steady over the past few months - roughly between 130-135 cents a litre - so the recent spike in prices was likely due to fuel retailers recovering the losses incurred during the low of the discount cycle, said Mr Sebastian.
Wholesale fuel prices had been dropping in recent weeks, which meant prices should ease in the coming weeks, he said.
Mr Sebastian said he expected fuel prices to ease by 2-3 cents over the next fortnight.