Petrol could soon be $1.30: analyst

There is no relief in sight for motorists with Easter's fuel price hike likely to roll into another rise fed by Iran's announcement it has started large-scale nuclear fuel production.

CommSec's Martin Arnold warned motorists could soon be paying $1.30 per litre for petrol.

Iranian President Mahmoud Ahmadinejad announced on Monday the Middle East nation was now producing enriched uranium on an industrial scale.

Tensions between Iran and the West affect crude oil prices because Iran controls the Strait of Hormuz - a narrow marine channel which 20 per cent of the world's oil supply passes through.

"One Iranian crisis, in the seizing of the British crew, has been replaced by another," Mr Arnold told AAP.

Coupled with the upcoming US summer driving season, demand for crude is likely to strongly exceed supply in coming weeks.

"The Australian national average petrol price fell by only 0.1 cents to 124.6 cents per litre in the week to April 8," Mr Arnold said.

"And it looks like that is about as good as it will get in coming weeks, with Singapore petrol prices moving sharply higher."

While the average price fell marginally, many motorists in capital cities suffered Easter long weekend price hikes of up to 15 cents a litre, NSW motoring body the NRMA said.

"The prices over Easter were artificially high," NRMA motoring and services president Alan Evans told AAP.

"There's not a lot of relief in sight."

Mr Evans said one positive to come from the long weekend had been better price parity between country and city areas.

"Some country prices were lower than Sydney."

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Source: AAP 2007