Call to stop fuel panic

PETROL prices will remain high, but motorists should cease panic buying as supply is not the issue, according to APCO director Peter Anderson.

RACV’s local fuel prices tool showed prices for unleaded petrol ranged between 185.9c and 200.9c a litre in the Geelong region on Friday.

Mr Anderson said they were “unprecedented price increases”.

“I have been in the industry for over 40 years ... and I have never seen anything like this,” he said.

“Due to consumer panic and demand, the APCO service station fleet cannot keep up with putting fuel into the tanks.

“When you sell three days’ worth in one day, three days in a row, it is impossible for us to fill the tanks.

“I’ve got no doubt our competitors are under the same exact extreme pressure.”

He said consumers needed to stop the “toilet paper syndrome”.

“Stop panic buying and we won’t have a problem,” Mr Anderson said.

“There is no shortage of product whatsoever at terminals. We’re definitely not going to run out.

“It’s the panic of the consumers that’s resulting in stock out.”

Mr Anderson said while he understood it was stressful for consumers to see high petrol prices, it would resolve eventually.

He said he believed prices would decrease again when the conflict in Ukraine ceased.

“The price will come down at some stage,” he said. “It’s just when and how, I don’t know.”

Economic experts warn Australians will spend up to an extra $12bn on petrol this year as global sanctions on Russia cause a surge in oil prices.

With the average price of unleaded petrol soaring to more than $2 a litre and breaking records across the country, investment bank Morgan Stanley estimates the average household will spend an additional $1100 this year.

Oil prices have surged to more than $A150 a barrel in the wake of Russia’s invasion of Ukraine.

In a note to clients, Morgan Stanley economist Chris Read said higher commodity costs would have a direct impact on drivers.

“We estimate that the current oil futures curve implies a $12bn increase in fuel spending by households this year,” Mr Read said.

That estimate is higher than the Australian Automobile Association’s $11bn forecast this week.