Motorists face more surges in the price of petrol, the Automobile Association warns.
Even after two increases last week, in which petrol rose 8c a litre and diesel by between 6c and 10c, the AA says oil companies still have not fully passed on a global cost spiral.
"So we shouldn't be surprised if there's pressure to raise prices in the coming week," senior AA analyst Mark Stockdale said.
All the big-four suppliers have raised the price of 91-octane petrol at city pumps to $2.11c.
That is just 8c below the record price of $2.19c a litre for 91-octane after Hurricane Katrina crippled American oil production in 2008. Mr Stockdale said the companies had faced a 13c increase in import costs in the past fortnight.
Only Gull is undercutting the big players, selling its 91-octane bioethanol-petrol blend for $2.06c and diesel for $1.48c.
Mr Stockdale warned instability in the Middle East could mean the $2.19c record could be exceeded this year.
British International Development Minister Alan Duncan warned the barrel price of crude oil could almost double to $US200 ($NZ270) if the unrest in Libya and elsewhere in the Arab world escalated.
"All I'm predicting is danger," Mr Duncan said.
Mr Stockdale said prices were unlikely to ease much once the latest Middle East crisis abated or Saudi Arabia tried to stabilise the market by increasing its oil production.
"We have to get used to the idea that as global demand increases and supply doesn't, we going to be facing these kinds of price fluctuations... The only way we can manage that is by reducing our consumption."
