If you've filled your car up with petrol this week, you will have been in for a shock but the bad news doesn't stop there as it's forecast to only get worse.
The average price of regular unleaded hit an equal record high of $2.18 a litre across Sydney.
The last time it hit these record levels was in June last year.
"People will spend more tonight on petrol than they ever have before in Sydney," NRMA spokesperson Peter Khoury said.
"That is the sad reality we face."
The cause? Oil-producing countries like Saudi Arabia are restricting supply, there are refinery issues in Malaysia and Singapore, and a weaker Aussie dollar.
There are also concerns the recent floods in Libya will hamper refining and only further push up prices.
Fuel costs are highlighted as a major hit to the hip pocket in the latest Commonwealth Bank Australia Household Spending Insights Index which looks at where we're spending our money.
Aside from petrol, spending on education has increased which was driven by an influx of foreign students.
Aussies are also spending more on household goods, motor vehicles and health.
Insurance was up too because of surging premiums.
Even though household budgets are tight, the index shows that Aussies are still happy to splash out when the opportunity arises.
The report revealed Aussies splurged on the Fifa Women's World Cup and on tickets for blockbuster movies and concerts.
Overall, spending grew 2.3 per cent for the year to August.
This time last year it was growing at 18.7 per cent.
"The full effect of interest rate rises are not yet in most household budgets," CBA chief economist Stephen Halmarick said.
"So there's some further tightening of financial conditions to come in coming months and we think that will slow spending further."
