There are warnings petrol could reach $2 a litre unless governments act to stop fluctuations in the cost of crude oil, the NRMA said today.
The motoring body made the dire prediction as crude oil toped (US)$139 a barrel.
Assistant treasurer Chris Bowen said it was inevitable motorists here would have to absorb the cost.
Mr Bowen said for every dollar increase in the price of oil a barrel there would be a 1 cent increase in petrol prises.
“We’ve always said the biggest impact on Australian petrol prices was world oil prices,” he said.
He said the government needed to do everything possible to put downward pressure on oil prices and give consumers as much information as possible.