Petrol pain ahead as oil hits record

Already under the pump from rising interest rates and increased food prices, Australians have faced further financial pressure, with petrol prices rising after oil prices touch record levels recently.

Oil prices shot to a new record of just over US$110 a barrel last month, signalling that prices at the pump may soon also rise, resulting in further pressure on family budgets.

While the average unleaded price at the pump remains just under $1.40 a litre, according to industry data, reports suggest that prices in capital cities are well above that level.

The record prices on international oil markets are being exacerbated by the weak US dollar. The once mighty greenback has fallen to record lows against a number of currencies recently. Oil exports are priced in US dollars and as a result, a weaker dollar makes oil cheaper, increasing sales and driving up the price.

While oil prices have eased since, Australians found themselves paying high prices through the Easter holidays.

Meanwhile, Caltex, one of Australia's biggest petrol companies, was caught out recently after the cover of its magazine for franchisees featured an image with petrol priced at more than $3 a litre. The magazine predicted that petrol will be priced at $3.34 a litre in 10 years time.

Check out our petrol price resources and don't let price rises cramp your style.

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