Escalating tensions in Eastern Europe are set to hit the hip pockets of South Australians with the price of oil marking record highs as the conflict between Russia and Ukraine continues.

With no foreseeable end to the conflict, the hike in oil prices will drive up Australian fuel prices which are already seeing historic highs across the nation.

Barry Money, CEO of Real Institute of South Australia (REISA) foresees consumers carrying the can of high fuel prices across the board.

“South Australians will see a rise in the cost of goods and services to absorb the higher price of fuel,” he said

“Paying more for fuel is guaranteed throughout this conflict. Australia is a large country with significant transport requirements for the distribution of goods and services between states. Unfortunately, the cost of transporting our goods will rise and ultimately be passed onto the consumers.”

“Disposable income for the average South Australian may be reduced as the costs for utilities and goods climb, meaning less cash for additional mortgage repayments and property investment,” said Money.

Money said that mum and dad investors may choose to be more conservative in uncertain economic times.

The South Australian real estate market to date has seen unprecedented growth, and unlike initial signs of dampening coming out of the eastern states, South Australia continues to be a destination for growth and investment.

“The South Australian property market may be buffered for a period of time, but ultimately our growth will be connected to the duration and impact of global crises,” Money said.