PETROL prices hit a record high of 156c a litre in Cairns yesterday but experts have warned the pain at the bowser is about to get worse.

One tipped prices would rise as high as 175c a litre within a fortnight.

Last week, fuel prices in Cairns averaged 152c a litre, a month ago they were 144.7c a litre, six months ago they were 134.1c a litre and a year ago they were 127.9c a litre.

It is now more than three years since prices were below $1 a litre.

Yesterday, the pain of the record high prices was being felt across the country with the latest weekly update from the Australian Institute of Petroleum showing a new national average record of 158c a litre.

Darwin was doing it toughest in the capital city averages, with motorists in the Northern Territory paying 168c a litre.

RACQ external relations manager Gary Fites said Cairns prices were following price peaks seen in Brisbane last week as part of the usual flow-on cycle.

"You’ll see these prices at this level for the week," Mr Fites said.

The average price in Cairns on Sunday was 154.9c a litre but by yesterday, many bowsers across the city were showing the new record of 156.9c a litre.

Although Mr Fites said further price hikes could be on the horizon, CommSec equities economist Savanth Sebastian yesterday was sure of it.

"The national average price is likely to hit $1.60 a litre, with prices likely to lift as high as $1.75 a litre in the next fortnight," Mr Sebastian said in his regular petrol briefing note.

"Australian households are forking out a record amount of cash to keep the family car on the road and as the added stress on the household budget takes its toll, motorists will need to make some hard decisions on whether to downsize the family car or start using alternative transport."

Mr Sebastian said the average family was now spending almost $222 a month on petrol.

"The average Australian household is forking out $221.76 a month on petrol, up almost $53 in the past eight months." Motorists who spoke to The Cairns Post yesterday were fed up with yet another price hike but resigned to the fact more increases were on the way.

"I expected it would go higher and I expect it to go a lot higher yet unfortunately," Gold Coast visitor Brendan Moore said.

"I think we’re going to see a lot of transport companies go out of business."

He called on the Federal Government to cap its GST take on petrol to ease the "ridiculous" price burden that was impacting on everyone’s lifestyle.

North Cairns driver Jody Scott also expected the price "to go up before it goes down" but said daily fluctuations didn’t worry him too much.

"I can’t do much about it," he said.

"I live in town and hardly ever have to fill up, just when it starts to beep."

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