Petrol costs of $2 a litre are "the brand new norm" as oil international locations search to squeeze the world for max revenue forward of a world shift to electrical autos, the previous president of BP Australasia says.
OPEC lately introduced a reduce in oil manufacturing that's anticipated to have knock-on results at bowsers all over the world.
Mixed with the top of the gas excise reduce in Australia, native drivers are having to dig a lot deeper when filling up the tank.
And now the prospect of $2.50/L costs are additionally looming.
Greg Bourne, the previous BP head, mentioned each the conflict in Ukraine and OPEC's manufacturing reduce had been seeing costs rise across the globe.
Whereas OPEC's choice was seen politically as a solution to assist Russia in its invasion, Bourne mentioned that wasn't the entire image.
"That's primarily for them to usher in extra income," he mentioned.
"They're pondering long-term, as we in Australia can be pondering of power transition and decarbonising.
"It impacts the exporting international locations, they see they've a decade to usher in extra income to transition their very own nation. It isn't tit-for-tat or something like that."
Bourne mentioned it was a "long-running technique".
However he doubted costs would rise to greater than $2.50/L.
"Additionally they know in the event that they hit international locations too arduous, it again fires when it comes to recession, then demand goes down," he mentioned.
"For us right here, $2/L, a bit extra, possibly slightly bit much less typically. That is the brand new norm."
He mentioned the transition to electrical automobiles within the coming decade can be notably vital.
As extra producers switched to large-scale electrical manufacturing, he mentioned, and Australia pushed forward with decarbonising, the nation would turn into far more resilient to "geopolitical shocks".
"My very own view is decarbonising the financial system is de facto essential, extremely essential," Bourne mentioned.
"Larger costs imply we purchase extra gas environment friendly automobiles and begin the transition to the EV world."
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