Oil has reached a new record high of 133 US dollars a barrel, amid concerns supply is not keeping up with demand.
Prices in Sydney, Adelaide, Melbourne and Tasmania hit $1.62 a litre yesterday, while motorists in other parts of the country have been paying in excess of a dollar sixty for more than a week.
National Australia Bank economist Gerard Burg says it's unlikely prices will stabilise in the short term.
NRMA President Alan Evans says it doesn't bode well for motorists here who are already paying excessive amounts in some suburbs.
“This is really bad news for Australian motorists and really bad news for the Australian economy.
“It really demonstrates the need to do something and do something in the short term, and the long term to ease the pain for motorists.”