Price jump part of new, deeper fuel cycle: RAA

Motorists have had a shock with prices spiking across Adelaide petrol stations, but they have been warned it is all part of a new, deeper fuel cycle.

Prices across the city leapt by 20 cents a litre in just a few hours this morning, lifting the price of regular unleaded above $1.60 per litre at most retailers.

While some independents kept their prices lower, the average remains at 161.9 cents a litre.

A falling Australian dollar and a rise in commodity prices have sparked the price climb, but the Royal Automobile Association (RAA) said since discount fuel displays were removed, competition has actually increased.

“If Coles and Woolies want to gain customers, they now need to compete on their normal price, what we’re seeing now is prices dip further below cost price than we have previously,” Chris West from the RAA said.

Motorists have been told to shop around, with prices set to start falling from tomorrow.