Petrol prices could hit $1.80 a litre within weeks, according to the nation's largest motoring organisation.
The NRMA made the statement yesterday, saying the nation was in the grip of a "fuel crisis" and that Australian motorists were at the mercy of volatile oil prices.
The claims were made after global oil prices spiked on the news that petroleum giant BP had been forced to shut a key Alaskan oilfield following a pipeline leak.
Market analysts also say the violence in the Middle East is adding to the upwards pressure on oil prices. RACT chief engineer Doug Ling yesterday called on the oil companies to refrain from using the global situation as an excuse for putting prices up.
"As we see it, the oil companies are taking advantage of the world price increase, and increasing their margins at the same time," Mr Ling said.
Tasmanian Automobile Chamber of Commerce general manager Malcolm Little said he expected further price increases of 5-10c a litre in the near term, also suggesting the cost of fuel was unlikely to fall any time soon.