Up, up and away: fuel costs soar

Posted by click at 2:22 AM in Oil-Asia

PORT Macquarie motorists, already reeling at prices of $1.04c for unleaded petrol, are fearing significant rises in the near future.

Sydney prices last week reached 107.9c, with predictions it could rise to $1.20 in coming weeks.

Fears about future oil supplies are pushing up the price of advance crude oil order on international financial markets.

The likelihood of an impending war with Iraq pushed the international oil price to a 21/2 year high of around $US37 a barrel last week.

It is possible international crude oil prices might jump to around $US45 a barrel or more, say some analysts.

This would push Australian prices up another 10 to 15 cents a litre. Oil supplies from Venezuela and Nigeria are also low.

The Australian Service Station Association has warned motorists to brace for further rises.

Economists are worried motorists will respond by cutting discret- ionary spending, reducing economic activity and retarding growth.

Petrol normally accounts for about five per cent of household budgets, so fuel price rises have a big impact on consumer confidence.

There have been a few occasions over the past couple of years when petrol in Port Macquarie has exceeded the $1 mark.

The recent increase has motorists worried that this may not be a short-term move.

Motorists have been paying more than 90c litre for the past three years with only a couple of occasions where the $1 litre mark was reached.

However, this time last year the price was in the low to mid 80c a litre bracket.

Currently Port Macquarie service stations have unleaded ranging from 102.9c to 104.9c litre.

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