Motorists have been warned petrol prices could reach $A1.50 a litre as demand in Asia soars and severe wintry weather hits Europe and North America.
Petrol prices have experienced their biggest back-to-back increase in 11 months, rising by almost five cents per litre over the past fortnight, a report from Commsec has found.
In the last week alone, prices have jumped 2.7 cents to a four-month high of 126.4 cents per litre.
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And Commsec predicts pump prices may lift another two cents per litre over the next week.
Singapore's benchmark gasoline price now stands at 15-month highs, in response to strong demand in Asia and the harsh winter in the northern hemisphere.
The only silver lining for motorists is that pump prices would now be near $1.50 a litre had the Aussie dollar remained at levels near US70 cents.
The wholesale petrol price is also at a high level, reaching 7 cents per litre in the past three weeks, or its highest level since September 3 last year.
Australian motorists are currently paying $12 a month extra to fill up their tanks compared to three months ago.
Commsec economist Craig James says petrol prices continue to creep higher and there are no signs of a peak in sight.
"If average weekly prices push up to $1.30 a litre then weekly highs will push up to near $1.40-$1.50, causing shoppers to become even more bargain conscious," Mr James said in a statement.
Darwin and Canberra experienced the highest petrol prices in the past week at 133.7 cents per litre (up 2.6 cents) and 131.7 cents per litre (up 2.7 cents) respectively.
Sydney had the lowest petrol price last week, at 125.1 cents per litre (up 1.6 cents).
