Drivers are being smashed unnecessarily at the petrol pump as servos take advantage of the Iran crisis, the nation's largest motoring group says.
Regular unleaded was going for 219.9 cents per litre at half of Melbourne petrol stations and at least 217.9c/L in half of Sydney stations on Wednesday afternoon, the NRMA said.
The average price in Brisbane (210.2c/L) also far exceeded the price expected for the top of its price cycle.
"Oil companies are using the Middle East crisis as an excuse to jack up margins," NRMA spokesman Peter Khoury said in a statement.
"This must stop immediately."
Petrol companies were contacted for comment.
On Tuesday Mr Khoury said that it usually took at least a week for overseas prices to flow through to the local bowser while noting wholesale prices had risen 4c/L for petrol and 3c/L for diesel.
Iran has shut the Strait of Hormuz - through which around one-fifth of the world's oil supply passes - threatening to set on fire any ship that tries to use the route.
The consumer watchdog has been tasked with monitoring local fuel prices, while the nation's biggest oil refining companies promised not to hike prices unnecessarily.
Energy Minister Chris Bowen met with the bosses of Australia's refining companies on Tuesday, and said he had great confidence they would not be profiteering unnecessarily or unjustifiably.
Cabinet colleague Madeline King dismissed fuel supply concerns on Wednesday.
"The Strait of Hormuz is really important to global trade," the resources minister told reporters.
"We generally have concern because there's this conflict going on, but really importantly, we are confident in our fuel supply at this stage."
A significant minority of petrol stations were still offering fuel under $1.90 in Sydney and Melbourne, including in Reservoir, where drivers queued to catch up diesel and petrol below $1.80.
Adelaide and Perth petrol markets remained low with the average price below $1.90, the NRMA said.
