The Australian Institute of Petroleum reported a two-and-a-half-year high in the local price of unleaded petrol with motorists paying an average of $202 a month for full tank.

A weekly data showed that the average price of unleaded rose from 143.9 cents last week to this week's144.6 cents per liter.

Darwin and Hobart were paying the highest cost. In Adelaidewhile petrol price is 5 cents lower on the average.

Service Station Association chief executive Ron Bowden expalined that strong global demand prods the continuous fuel price hikes.

Bowden added, "The most important factor is what's happening in the Middle East and in Libya. But the other thing that is happening very much in our part of the world is continuing strength and strong demand in the economies of China and India. Even the US economy is showing signs of coming out of the recession, and as signs become more positive you see the market go up."

Mr Bowden shares that the current outlook for motorists buying diesel is much worse.

"In fact anyone who is buying diesel on a regular basis now would be aware that diesel is a lot more expensive than petrol, and that's purely because of the strong demand," Bowden stated.

With the Asian economies having a higher demand for diesel than for petrol, the Service Station Association is encouraging motorists to shop around for fuel. They could take advantage of the weekly discounting cycle that would come about.

According to Bowden, "It is not a fixed formula and every market area has its own pattern...The most important thing is for people to become aware of the pattern in their area and buy on those cheaper days."

Before the Easter weekend, the price for unleaded petrol is expected to rise at 2 cents more. The price of diesel is foreseen to rise as well.

More from IBT Markets:
Newsletter: To receive Global Markets update, sign up here