What is the reason behind the rapid increase in the price of petrol?

The price of petrol has been on the rise and it's not just affecting Australia, but the entire world. With prices up by more than 40% in some countries and with no signs of slowing down, it's important to ask why this is happening.

Different factors have been contributed to this rapid increase in price over the past few years including speculation, oil production, geopolitical tensions and environmental concerns.

Oil companies are increasing their prices because they have to. Oil extraction is an expensive process where only a small amount of oil can be extracted from a well. As oil becomes harder to extract, the price simply has to go up.