Brisbane petrol prices

[Mozz]

We are rapidly approaching the psychological barrier of $1.50 which will result in another wave of people coming onto the stressed Queensland public transport infrastructure and another step towards crashing through the $2.00 barrier.

Hopefully the $2.00 a litre barrier isn't broken until 2015 when some of the current public transport initiatives will be in place, I hope but somehow I don't think that it will wait. More like $2.00 in 2009/2010 I suspect.

[ozbob]

Thanks Mozz, all the more reason to ramp up rail!

[Mozz]

Well it seems competition is impacting on pricing, some have gone up and some haven't maybe some are just trying it on to see if the others follow. Local BP at Oxley is still on $1.27 at 1600hrs today.

[ozbob]

From Courier Mail click here!

Oil price to push up fuel cost

Oil price to push up fuel cost
Article from: The Courier-Mail

John McCarthy

April 22, 2008 12:00am

PETROL prices are expected to soon climb another 4? a litre as oil prices in Singapore hit record highs.

That means Brisbane motorists will be back paying fuel prices at or near record levels, according to economist Craig James.

Brisbane motorists were paying up to $1.41 a litre recently and yesterday the price was between $1.30 and $1.36 a litre.

Mr James said Australia had been shielded from the 9 per cent rise in oil prices in the March quarter because the value of the Australian dollar had increased by 4 per cent, meaning it was cheaper to buy overseas goods.

"However, it's unlikely that the Aussie will appreciate much further and is more likely to trend sideways over coming months," he said.

That will mean any future oil price increases won't be offset by the dollar. Singapore unleaded petrol, used by oil companies to set wholesale prices, rose by $US2.36 to $US120.78 a barrel.

The traditional driving season is also about to get under way in the US, when people take to their cars for the annual holiday. That will increase oil demand and push up global prices even more.

"The average Australian household is forking out a record amount at the petrol pump of just over $200 a month on petrol," Mr James said.

The Tapis crude quote also rose by $US6.13 a barrel in the past week or 5.3 per cent to $US122.25 a barrel.

However, while petrol prices have rocketed, car affordability is at its best level in 24 years.

Despite that, fewer people are buying them, with interest rates blamed for the fall in sales announced yesterday by the Australian Bureau of Statistics. It was the first fall in monthly sales in 15 months.

"It takes a worker on the average wage just over 32 weeks to buy a new Ford Falcon, the lowest reading in 24 years and well down from 38 weeks of wages just five years ago," Mr James said.

The Motor Trades Association of Queensland yesterday said the Federal Government's proposed regulation of fuel prices was unlikely to achieve real benefits.

[ozbob]

From Courier Mail click here!

Pain for families set to deepen as crude oil price keeps on rising

Pain for families set to deepen as crude oil price keeps on rising
Article from: The Courier-Mail

John McCarthy

April 25, 2008 12:00am

MOTORISTS have been warned their petrol price nightmare is far from over.

The warning came yesterday from Caltex chairwoman Elizabeth Bryan as bowser prices soared to record highs in response to a spike in world oil price that shows no sign of abating.

With the average Australian household spending about $200 a month on fuel, every cent-a-litre movement is hitting already stretched budgets.

Ms Bryan told her company's shareholders there was long-term upward pressure on petrol prices, "and Australians . . . can expect to pay more".

She also said the Federal Government's plan to introduce a carbon cost to the economy by 2010, through an emission trading scheme, would also contribute to higher petrol prices if it were applied to transport fuels.

Her comments came at the company's annual general meeting, during which Caltex said it made $131 million in the three months to March.

That was before world oil prices ? to which Australian petrol prices are pegged ? reached a record high of almost $US120 a barrel. It was about $118.30 a barrel yesterday.

Petrol was being sold for about $1.46 a litre across southeast Queensland. Diesel had climbed to more than $1.61 a litre.

A survey this week found one in three motorists would give up their cars and catch public transport to work if petrol prices hit $1.75 a litre. Almost half those surveyed had already reduced their car use.

Fueltrac general manager Geoff Trotter said the story of ever-rising prices was exactly what oil companies wanted consumers to believe.

However, Ms Bryan said as an oil refiner and marketer ? rather than producer or explorer ? Caltex was forced to pay the world price for oil.

"Petrol prices are rising, and are expected to continue to rise, but not because of collusion or price gouging, as our critics suggest," she said.

"The cost of crude oil, our main input which we have to buy on the open market, has rocketed from $US10 a barrel to well over $US100 a barrel in the last 10 years."

Mr Trotter said he did not expect prices to soar this weekend, despite today's public holiday, as petrol was already at the top of its weekly cycle.

He said the higher price for oil had more to do with currency fluctuations and hedge funds manipulating the market and the US economy than it did with supply and demand.

He said there had been periods such as the 1991 Gulf War and Hurricane Katrina in the US, when oil prices had skyrocketed and everyone thought petrol prices were on an unstoppable path upwards, but they always came down.

I added these comments to the Courier Mail blog on the article:

RAIL Back On Track has been calling for pro-active expansion of our rail network for some time now,  knowing full well what is coming in terms of fuel price rises, environmental costs and the impacts on transport poor car dependent citizens.

We must position our community for a sustainable transport now.  We do not have much time left.

Immediately order another 50 three car trains for progressive delivery following the present 44 three car trains on order.
Quadruplicate the railway line from Corinda to Ipswich.

Duplicate the line to Cleveland.

Bring the airport railway back into normal suburban services and fares.

Build the railway line from Petrie to Kippa Ring, Darra to Springfield now.

Fast track the CBD underground rail extensions.

Bring back the far western by pass as a road/rail corridor. Take the freight out of the cbd axis, this will then allow our rail network to operate at metro frequency.

Introduce local bus feeder loop services (similar in concept to the free city loopers) to help overcome the need for car transport to access railway and key bus stations.

Commence detailed planning for light rail for the inner suburban areas.  Electric rail light and heavy is sustainable.  The BCC plan for a super inner city busway is going to meltdown due to fuel problems in the longer term.

Sack the failed planners in Queensland transport and get people with a vision and the education to move forwards out of the congestion morass which is transport in south-east Queensland.

Do not remove any more of our country railway lines.  Leave them intact because surely as night follows day they will be needed again.

[ozbob]

From Courier Mail click here!

Oil price hits new record

Oil price hits new record
Article from: Agence France-Presse

May 17, 2008 07:59am

THE price of oil rocketed to a record high point of $US127.43 ($136) per barrel overnight, as US President George W Bush prepared to urge Saudi Arabia to pump more crude.

New York's main oil futures contract, light sweet crude for June delivery, beat the previous peak of $US126.98 that was set on Tuesday owing to worries about tight supplies despite a downgrade to global oil demand growth for 2008.

"Everything the market looks at is bullish,'' said a report by US energy risk management firm Cameron Hanover.

Some of the factors pushing prices up included speculation that China's demand for diesel needed to fuel its power plants would rise due to reconstruction efforts after this week's earthquakes and an upward revision of its oil price forecast by investment bank Goldman Sachs, from $US107 to $US141 a barrel for the second half of the year.

"Unless there is a confluence of substantive bearish news, when there is a pullback of something like US$5, it's unlikely to stay down because enough participants will see that as a buying opportunity,'' said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Oil has again consolidated near the $US125 a barrel mark, Shum noted, because the commodity is still seen as a better bet than investors' other options.

"Oil as a class has performed better this year than equities and bonds, and continues to encourage investors to pile money into oil and stay in oil,'' Mr Shum said.

Investors have been viewing oil and other commodities as a hedge against inflation and a weaker dollar since the middle of last year, and that link has meant that oil has been tending to rise and fall inversely with the US dollar.

[ozbob]

From Brisbanetimes click here!

No petrol price relief in sight

No petrol price relief in sight
May 21, 2008 - 6:45PM

Petrol prices have soared above $1.60 a litre in some capital cities, with an analyst saying there is no respite in sight for motorists.

In Adelaide, Melbourne, Sydney and Tasmania the highest price today was above $1.62 per litre, while motorists in the Northern Territory have been copping prices in excess of $1.60 for more than a week.

In Brisbane, prices were hovering around the $1.30 mark in some parts of the city, according to motorist information website motormouth.com.au.

National Australia Bank economist Gerard Burg said it was unlikely prices would stabilise in the short term.

"Obviously we're seeing a steady increase in world oil prices and that's been capturing headlines," Mr Burg said.

"There's a lot of uncertainties at play in the domestic market when it comes to the petrol prices," he said, pointing to the strong Australian dollar which is significantly easing pressure on the petrol price.

The dollar ended slightly lower today, off its 24-year high of recent days. Crude oil is traded in US dollars, meaning Australia's strength against the greenback is offsetting rising crude prices.

Mr Burg said the recent decision by the Organisation of Petroleum Exporting Countries (OPEC) to refuse requests for a rise in oil production would not help.

"There's no reason to expect prices to fall away from these levels anytime soon."

In Melbourne the price rose to $1.63 at one service station in the city's south-east.

Victorian motoring group the RACV said the spike was part of the mysterious weekly price cycle which even an extensive 2007 investigation by the competition watchdog could not unravel.

The service station was charging the steep price despite a nearby rival station charging just $1.36, RACV spokesman David Cumming said.

"If others don't follow, that's the end of it," he said.

"It's just someone trying it on."

NSW motoring body the NRMA reported the top price in Sydney was almost $1.63.

"Crude oil prices continue to rise and continue to break records and we're seeing the same at the bowser with quite dramatic effects on Australian families and also on the economy," an NRMA spokesman said.

"These prices have already hit Sydney and tomorrow is Thursday - the most expensive day of the week - so motorists need to brace for even more pain."

The lowest bowser price recorded across Sydney today was 138.9 cents a litre.

OPEC has steadfastly refused to increase output with the group's secretary-general Abdullah Al-Badri today saying the high price of crude was a result of the weakened US dollar, not the fundamental issue of supply and demand.

AAP

[ozbob]

From Brisbanetimes click here!

Drivers rethink filling up

Drivers rethink filling up
Georgina Robinson | May 22, 2008 - 6:49AM

Brisbane residents will begin leaving their cars at home as petrol prices continue their skyward trend, a fuel price consultant says.

Queenslanders were yesterday spared the 162 cent per litre record high unleaded prices experienced in southern capitals, courtesy of the state government's nine cent per litre fuel subsidy.

But Brisbane prices still peaked at 152 cents yesterday and Fueltrac spokesperson Chris Kable said people would begin to re-think "filling up".

"We're not far off people making a decision that they can't afford to drive their vehicles," Mr Kable said.

"In some parts of Brisbane I wouldn't be surprised if that's alreay happening."

Unleaded prices had today dropped back to hover around the 137 cent per litre mark, according to website motormouth.com.au.

But Mr Kable said that was part of the normal weekly pricing cycle and next week's Wednesday peak would likely be two cents per litre more than this week's.

Oil prices surged nearly $US5 to a record near $US134 ($139) a barrel after a US government report showed a surprise drop in crude stockpiles, reinvigorating fears of a supply crunch.

The gains bring oil up more than a third so far this year in a rally that has raised alarm bells in big oil consuming like the US, already hard-hit by a housing slump and credit crisis.

Australia's central bank said this week it considered raising interest rates further at its May 6 meeting to bring inflation back within its 2%-3% target range.

Weakness in the US dollar encouraged the overnight buying spree by bolstering the purchasing power of buyers holding other currencies, dealers said.

US crude settled up $US4.19 at $US133.17 a barrel after hitting a fresh peak of $US133.72. London Brent rose $US4.86 to $US132.70.

Overseas price moves typically take several weeks to flow into changes at Australia's petrol pumps.

The US Energy Information Administration reported that crude stockpiles in the world's biggest energy consumer fell 5.4 million barrels last week, countering expectations for a build.

''This report gives the market every reason to rally,'' said Rob Kurzatkowski, analyst at optionsXpress in Chicago.

The fall in weekly inventories intensified concerns that supply problems will persist for years as production falls short of growth in demand. Oil for delivery in December rose above $US142 a barrel on Wednesday - making it the loftiest contract on the futures curve.

US Energy Secretary Sam Bodman said the government could do nothing to ease the pain of soaring fuel prices for consumers heading into the summer vacation season, when road travel typically peaks.

''We have flat (oil) production ... and increasing demand,'' Bodman said.

"I don't think anything can be done near term.''

Crude prices have risen sixfold since 2002 -- hurting consumers and businesses and contributing to a rapid increase in food prices -- as rising demand from China and other developing countries outpaces new supply.

Intensifying the crunch, tight power supplies in parts of Asia, Latin America and the Middle East have triggered a boom in demand for diesel for use in generators, propelling the related US heating oil and London gasoil futures contracts to new and lofty peaks.

Weak US dollar

Investors have been drawn into the market by a weak US dollar, which has made commodities relatively cheap for holders of other currencies. The greenback slid to a one-month low against the euro on expectations of higher euro zone interest rates.

US investor Warren Buffett, the world's richest person, said he expects the US dollar to keep falling as policies needed to correct the slide had yet to be implemented.

The Organisation of the Petroleum Exporting Countries (OPEC) has blamed oil's rally on speculation and the weak US dollar and has repeatedly rebuffed calls from consumer nations for more supply.

OPEC's biggest producer, Saudi Arabia, said last week it has raised production by 300,000 barrels, but only to offset production problems from other members of the cartel.

[ozbob]

Sustainable mass transit is needed now!  We will continue to keep trying to keep some sensibility into Government policy.

[ozbob]

From Courier Mail click here!

Petrol smashes $1.50 mark

Petrol smashes $1.50 mark
Article from: The Courier-Mail

Darren Cartwright and Leanne Edmistone

May 22, 2008 10:24am

THE price of petrol has pushed through the $1.50-a-litre barrier in Brisbane this morning after world oil prices surged once again.

Several service stations have prices poised at $1.49.9, but two Shell service stations in Brisbane marked their petrol at $1.52.9, according to motormouth.com.

Fueltrac  general manager Geoff Trotter said Queensland petrol prices have been rising steadily for months and predicted it won't be long before it hits $1.70.

Mr Trotter said the slightest tremor in crude oil supplies was enough to spook the market and send barrel prices soaring, which then tranferred to the bowser.

"If the oil traders are right in their predictions that it will reach $150 (a barrel) this year, fuel in Brisbane will hit $1.70 (a litre) ? it's at $130 a barrel now," he said.

Opposition finance spokesman Peter Dutton has called on the government to act.

"The government has been full of rhetoric about reducing petrol prices," Mr Dutton said in a statement.

"Mr Rudd promised Australians cheaper fuel, and as we watch prices rocket past $1.60 per litre in some capital cities, it is time for him to act.

"Australian motorists are still wondering what the government will do to give them some relief at the bowser, as the cost to fill up the family Commodore nudges close to $100."

Two of the main indicators of future petrol prices, the New York and London futures markets for crude oil, soared past $US130 overnight.

In Adelaide, Melbourne, Sydney and Tasmania the highest price yesterday was above $1.62 per litre, while motorists in the Northern Territory have been copping prices in excess of $1.60 for more than a week.

"There's no reason to expect prices to fall away from these levels anytime soon," NAB economist Gerard Burg said.

NSW motoring body, the NRMA, has warned today could be even worse at the bowser. "Thursday (is) the most expensive day of the week so motorists need to brace for even more pain," a spokesman said.

The only potential for relief is the continued strength of the Australian dollar, which reached its highest level since the currency was floated in December 1983.

The dollar reached US96.54 cents at 4.08am (AEST), data from market data provider IRESS shows. The dollar's previous post-float high of US96.53 was reached on March 16, 1984.

But if the dollar falls, the price of petrol will climb even further without any movement needed in oil prices.

Wall Street reacted severely to the news of the oil price surge with the Dow Jones Industrial Average plummeting 226.02 points (1.76 per cent) to 12,602.66 at the market close.

[ozbob]

From Brisbanetimes click here!

Petrol prices break state record

Petrol prices break state record
Drew Cratchley | May 22, 2008 - 4:55PM

Queensland motorists today experienced the pain of record petrol price highs, but were spared the hip-pocket shock felt in other states.

Several Brisbane service stations advertised prices of 152.9 cents a litre for unleaded fuel during the morning peak, a level rarely seen in the sunshine state capital.

The daily average price in Brisbane was $1.49 a litre, according to online fuel monitor MotorMouth - the highest average price ever recorded in the state's south-east.

The previous record was set on May 1 this year, when the average price reached 144.6 cents a litre.

Gold Coast motorists had similar experience at the bowser, but those on the Sunshine Coast were spared, with one Caloundra service station selling unleaded at 135.9c a litre, the cheapest in the south-east.

The records come as the price of crude oil continues to rise - hitting $US134.59 ($A139.91) a barrel in Asian trade this afternoon.

In recent days unleaded petrol has pushed through the $1.60 mark in Sydney and Melbourne, while diesel has hit $1.80 a litre.

Diesel sold for as much as 172.9c a litre in Brisbane today, with the average price of 166.9c setting another record.

Queensland Premier Anna Bligh acknowledged high fuel prices were putting extra strain on already tight family budgets.

"I am pleased to see that prices for petrol in the south-east corner of Queensland continue to be lower than on average in other cites of other states of Australia as a result of our petrol subsidy here in Queensland," she told reporters in Brisbane.

"But petrol at more than $1.50 and climbing to $1.60 is very, very difficult for many people."

An inquiry into the Queensland government's fuel subsidy last year found more than $100 million a year of the $541 million scheme was not being passed on to motorists, and recommended an overhaul of the system.

So far the government is yet to act on the recommendations, but Ms Bligh said today she had not shelved the report.

"It's just more complicated than you think," she said.

Motoring body RACQ warns petrol prices are likely to remain high in the short-term.

"You'd have to say realistically you wouldn't see it getting any better in the next week or so," general manager Gary Fites said.

AAP

[ozbob]

From Transport and Logistics News click here!

Groceries to cost more for mums and dads

Groceries to cost more for mums and dads

The trucking industry?s customers will have to pay higher freight rates to reflect the spiralling price of diesel, the chairman of the Australian Trucking Association, Trevor Martyn, has warned.

Mr Martyn said the retail price of diesel was now more than 180 cents per litre in some capital cities, compared to about 134 cents per litre in October last year ? an increase of almost 35 per cent. He warned the price of diesel could go above $2 per litre in the next few months.

?Some trucking companies impose fuel levies and adjust them regularly, but many companies have been trying to absorb the rising cost of fuel. Those companies will go out of business unless their customers pay freight rates that reflect their real costs,? Mr Martyn said.

?The freight rate increases could be substantial, depending on the trucking company and its cost structure. Some companies haven?t received a rate increase for the last eight months ? they would need an increase of more than 10 per cent on average just to break even.

?Our customers have got to understand they face a stark alternative. They can either pay freight rates that reflect the cost of fuel, or a large number of trucking companies will have to close down. Once that happens, our customers won?t be able to find operators to move their goods in a timely way,? he said.

Mr Martyn said there was nothing the Australian Government could do to reduce diesel prices.

?The Australian price of diesel tracks the Singapore wholesale price very closely. It?s going up because of China?s booming economy, not because of anything we can do in Australia,? he said.

?The Government has already made the important decision to retain the fuel tax credit scheme, which means that trucking companies pay 19 cents per litre in fuel tax rather than 38 cents per litre. The green movement lobbied the Government to abolish the scheme; we argued just as hard that it should be retained.

?As a result of the scheme, we are able to keep our costs as low as possible while still paying our way on the road system,? he said.

[ozbob]

From Courier Mail click here!

Petrol tipped to hit $1.70

Petrol tipped to hit $1.70
Article from: The Courier-Mail

Leanne Edmistone

May 23, 2008 12:00am

THE PAIN at the pump is set to continue with diesel prices tipped to reach $2 and unleaded petrol $1.70 within a year.
Consumer angered continued yesterday as Brisbane petrol pump prices reached a high of $1.52.9, with an average of $1.49.9.

Motoring groups urged people to rethink car purchases and driving habits, and have put manufacturers on notice to harness alternatives to fossil fuels.

Prime Minister Kevin Rudd yesterday said there was no quick fix but measures such as the national monitoring system would help keep prices in check.

As the Opposition called for action, Mr Rudd said the federal Budget had provided tax cuts and other measures to help families with day-to-day costs.

Fueltrac general manager Geoff Trotter said yesterday that fuel prices had been steadily rising for months, and motorists who continued to be surprised were just "kidding themselves".

Mr Trotter said the slightest disturbance in crude oil supplies was enough to spook the market and send prices soaring.

Oil prices reached a record $US134 ($139) a barrel in Asian trade yesterday morning, following revelations that stockpiled supplies for America's peak July-August driving season were lower than expected and of China's hoarding for the Beijing Olympics.

Mr Trotter said the high point in Brisbane's seven-day petrol price cycle would push well through the $1.50 barrier next week, after an expected low of $1.38 on Tuesday.

"If the oil traders are right that it will reach $150 (a barrel) this year, fuel in Brisbane will hit $1.70 (a litre)," he said.

"The thing saving us from paying more is that the Australian dollar has reached a 25-year high (against the US dollar)."

Diesel prices were $1.80, with predictions it could reach $2-a-litre by next year.

Mr Trotter said the prices should lead to a shake-up of the car market and motorists' driving habits.

He said there would be a major shift to smaller, more fuel-efficient vehicles ? with some turbo engines using 4 litres per 100km, compared to an average 10 litres per 100km.

RACQ general manager external relations Gary Fites said it was time to focus on ways to ease reliance on fossil fuels rather than predicting how high prices would go.

Mr Fites said there were indications rising petrol prices had led to a drop in demand as people stopped driving, had affected new car purchases and contributed to demand for public transport.

[ozbob]

Clearly,  we must ramp up rail.  The only way the public transport system will cope with the huge demands will be a high frequency rail service.

Is the Government still playing the violin?  Do they understand the urgency of the situation? 

The Sustainability Minister Mr McNamara is under no illusion, the Queensland Cabinet as a whole has failed to grasp the fact that our public transport system is grossly underfunded and under-resourced for not only the demands now but the huge demands about to be put on it.

Hang on, it could be a rough ride ...

[ozbob]

From Courier Mail click here!

Petrol tipped to reach $2 this year

Petrol tipped to reach $2 this year
Article from: The Courier-Mail

Clinton Porteous

May 24, 2008 12:00am

MOTORISTS are confronting the nightmare of never-ending bowser pain following fresh warnings that petrol will crash through $2 a litre by the end of the year.

International oil prices are at near-record highs and Australian families are being told to prepare for serious stress on their finances.

"Two dollars a litre is inevitable ? it is just question of when," said Shane Oliver chief economist at AMP. "It could be sooner rather than later. You could see $2 a litre within three or four months."

As both Prime Minister Kevin Rudd and the man he employed as his fuel price watchdog appeared to raise the white flag yesterday, drivers in Brisbane were being slugged $1.50 a litre for unleaded fuel.

In other state capitals ? without the Queensland Government's 8.3? a litre subsidy ? it has already hit $1.60.

Amid reports of rising fuel thefts, Gold Coast police have linked a spate of licence plate thefts to the price hike. By last night 24 plates had been stolen in a week, potentially to be fitted over the plates of vehicles used by fuel thieves.

Inspector Darren Soppa said there was a pattern to the thefts.

"There are obvious economic reasons, there is a correlation between that and an increase in petrol prices," Insp Soppa said.

It now costs $100 or more to fill the tanks of many medium and larger-sized cars, effectively wiping out any benefit from promised tax cuts worth an average $20 a week.

Fuel costs rose 19 per cent in the year to March, according to the Australian Bureau of Statistics.

Despite that, oil giant Shell went out of its way yesterday to point out that Australians were still paying less for fuel than most of the world.

"Companies selling fuel at a very low margin are the reason Australia has among the cheapest petrol in the world, both before and after tax," Shell said on its website.

The oil giant says Australians have the world's fourth-cheapest fuel prices, behind Mexico, the US and Canada. 2

Mr Rudd said there was little his Government could do to provide relief.

"I can't control the global price of oil that's been fuelled by a whole range of factors," Mr Rudd told the Nine Network.

Petrol Commissioner Patrick Walker played down expectations of his new monitoring scheme.

"The FuelWatch system itself won't actually affect international oil prices and won't bring down significantly the headline price," he said.

Federal Opposition Leader Brendan Nelson accused Mr Rudd of breaching trust with Australian voters.

"Mr Rudd I think should be ashamed of himself after six months basically admitting that he's out of touch and he's out of ideas," Dr Nelson.

The Coalition is pushing for a 5? a litre cut in petrol taxes but Mr Rudd is refusing to match it.

Independent MP Tony Windsor said the Government could cut petrol prices by at least 50? a litre by scrapping fuel taxes altogether.

The fuel excise is 38? a litre, raising about $13 billion a year, while the GST adds about a further 15? a litre. For every 20 per cent rise in the price of fuel, the Government makes about $500 million extra from the GST.

The surge in petrol prices in the past 12 months is already equal to a quarter of a percentage point interest rate increase on a typical home loan.

Mr Rudd said Labor had delivered big tax cuts in the Budget as well as extra help on childcare and education costs but admitted the benefits were disappearing.

The price of crude oil is now well above $US130 a barrel and industry experts admit it is heading towards $US200 a barrel as speculators move in.

The cost of higher fuel is set to shake through the Australian economy pushing up transport costs with major knock-on effects.

Motoring group RACQ is expecting another 5? a litre rise in the next two weeks.

[ozbob]

From Brisbanetimes click here!

Driving back to the future: frugal motoring takes off

Driving back to the future: frugal motoring takes off
May 25, 2008 - 2:20PM

Fifty or 60 years ago frugal motorists emerging from wartime rationing would turn off their engines at every opportunity to save petrol.

Now a new range of fuel-efficient vehicles will do it for them, stopping the engine every time the car stops, as Australia, like the rest of the world, heads towards a future of ever increasing petrol prices.

There's also hybrid models, running on a combination of petrol and electric power, super efficient diesels, small turbo-charged models and mini petrol-driven cars designed to sip rather than guzzle.

Conversion kits to run cars on liquefied petroleum gas (LPG) are running hot with the industry now designing versions suitable for four-cylinder cars.

In the future there will even be cars running on compressed natural gas (CNG) and plug-in electric models.

While hydrogen power and fuel cell cars are still under development.

It's all part of the brave new world of motoring as oil prices continue to rise pushing up the price of fuel and with it just about everything else as transport costs soar.

Just this week petrol in most states crashed through the $1.60 a litre barrier with some predictions it could go close to $2 a litre by the end of 2008.

So as everyone tries to keep the family budget from going bust, just what is the best option for motorists right now?

In the simplest terms it's a case of either reducing the cost of the fuel or reducing the fuel consumed.

In the first instance the answer is simple with LPG offering motorists major savings.

LPG prices are currently around half those for petrol and according to Phil Westlake, industry development manager for LPG Australia, the savings on offer have never been greater.

Motorists also get the benefit of a $2,000 federal government grant to convert their cars.

"Even without a $2,000 grant, a motorist who converts a six-cylinder engine to run on gas will recover their conversion investment in under two years, assuming they travel 25,000 kilometres per year and their conversion cost $3,000," Mr Westlake said.

"Factoring in a $2,000 grant towards the conversion, you would recover the conversion cost in only seven months."

But gas isn't the only option.

There's now a range of cars in the light model segment that cut petrol consumption to as little as six litres per 100 kilometres including the Toyota Yaris, Honda Jazz and the Mazda 2.

Even more miserly are the hybrids, like the Toyota Prius and the petrol-electric version of the Honda Civic.

Both can cut fuel consumption to around four litres per hundred kilometres, turning the petrol engine off whenever it's not needed, either stopped at the traffic lights or cruising the highway.

By comparison the Prius can travel about 85 kilometres on $5 of fuel, even at today's prices, while the traditional Aussie six-cylinder will be lucky to make 30km.

Not surprisingly, Holden has announced plans to have a hybrid Commodore on the market within about two years.

Diesels also offer strong savings, some increasing the range of a medium-sized sedan to more than 1,000 km on a single tank.

The oil-burners have long been embraced in Europe, and are slowly growing in popularity in Australia although local motorists, for some strange reason, are still slugged more for diesel than unleaded petrol.

But if the ultimate in low cost motoring is what you're hankering for then you might have to wait some time or get yourself out on the road between Darwin and Adelaide every two years when the world's fastest solar-powered cars showcase just what can be done with the power of the sun.

True, they're not the most comfortable or sturdy vehicles on the highway and there's no room for passengers or a set of golf clubs.

But they might just prove to be the future of personal mobility, if not this century, in the centuries to come.

AAP

[ozbob]

From Courier Mail click here!

fears squeeze on coffers if petrol GST is cut

Premier fears squeeze on coffers if petrol GST is cut
Article from: The Courier-Mail

Clinton Porteous and Rosemary Odgers

May 26, 2008 12:17am

PREMIER Anna Bligh has fired a warning shot at Canberra as the Federal Government confirmed yesterday it is looking at slashing GST on fuel.

With pump prices at record highs and political pressure mounting, the Rudd Government has been forced to find ways of easing "petrol stress".

Families Minister Jenny Macklin conceded the Government's sweeping tax review would examine lowering the GST on fuel.

The shift came as petrol prices are set to dominate Parliament today at the start of a crucial two-week sitting.

Prime Minister Kevin Rudd and Treasurer Wayne Swan are under immense pressure as relief offered in the Budget is being chewed up by rising petrol bills.

One leading economist has warned that unleaded fuel prices could top $2 a litre in the next three or four months.

So far the Federal Government has refused to match the Coalition's promise to cut petrol excise by 5? a litre but cutting the GST on fuel would be a method of providing relief.

Revenue from the GST on fuel is surging on the back of higher prices. It is estimated an extra $500 million has already been collected in the past year.

But Premier Bligh said Queensland would not tolerate a drop in GST revenue coming from Canberra.

"I expect that any tax review won't see the states short-changed ? that would not be in the public interest," she said.

"This is the money that pays for our hospitals, roads and schools."

Gary Fites of the RACQ backed the Premier saying Canberra should not be allowed to rip off the states.

"It could be construed as a very cunning ploy to shift the cost to the states," he said.

When motorists pay $1.50 a litre for petrol more than 13? is GST. The money is collected by Canberra but then passed onto the states.

The Commonwealth also collects another 38? a litre through a federal fuel excise.

Opposition frontbencher Joe Hockey yesterday taunted the Government for failing to match the Coalition promise to cut the excise by 5? a litre.

"We can and will run the line that petrol will always be cheaper under the Coalition than it will be under the Labor Party," he told the ABC.

Mr Swan has attacked the excise cut as economically irresponsible but Ms Macklin confirmed the Government was looking at lowering GST on fuel.

Ms Bligh also said that the State Government was looking at ways to ensure the 8.3? a litre subsidy for Queensland drivers was delivered in full. She said she was working on a response to a critical report that found 2-3? of the subsidy was not reaching the motorists.

[ozbob]

From Courier Mail click here!

Rising fuel costs GST jackpot for government

Rising fuel costs GST jackpot for government
Article from: The Courier-Mail

Clinton Porteous and Rosemary Odgers

May 27, 2008 12:00am

AUSTRALIAN motorists have paid almost half a billion dollars extra for petrol since the Federal Labor Government took office six months ago.
The spiralling cost of fuel has proved a revenue bonanza for governments collecting tens of millions of dollars extra in GST payments.

Queenslanders are now paying almost $1million a day in GST as unleaded petrol hovers near $1.40 a litre in Brisbane and much more in regional centres.

In December 2007 the average national price was about $1.38 a litre and it has now shot up to  more than $1.50, with motorists paying  $478 million extra.

Premier Anna Bligh  warned the Sunshine State would lose $300million if Canberra completely removed the GST from fuel.

"That's $300million out of our budget for schools, hospitals and roads," she said. "I do think we've got to think very carefully about any changes in this area."

But Ms Bligh  supported a Commonwealth taxation review  that may  remove the GST from the excise component of fuel.

This would save motorists just under 4c a litre but it would be at least 18 months before the savings would kick in. The Coalition is campaigning for a flat 5c cut on the federal fuel excise.

During  Question Time Monday, May 26, Opposition Leader Brendan Nelson said the Government had done nothing to  stop the fuel price rises in the six months it had been in power.

"Don't Australians deserve more than a Prime Minister who is quitter?" he asked Federal Parliament.

Dr Nelson said the Government's pledge to consider cutting the GST on fuel excise was "policy-on-the-run".

Prime Minister Kevin Rudd said petrol prices were "going through the roof" and it was impacting heavily on families. Since the Iraq war oil prices had gone up 400 per cent, he said.

Mr Rudd said the new FuelWatch system to help consumers shop around for the best deal will start in December 2008.

Price projections show that in May about $216 million worth of GST will be collected on fuel nationally with  Queensland contribution about $30million.

Commonwealth Securities economist Savanth Sebastian said the average household was now forking out almost $211 a month on petrol, up almost $42 over the past eight months, (since May 2007).

"It's not just motorists that are feeling the pain from the high prices," Mr Sebastian said. "The sustained higher fuel prices are likely to be felt across the economy, having a lagging, yet adverse, effect on firms as well as consumers."

Treasurer Wayne Swan's office said there was no update on revenue from petrol price increases beyond the Budget papers.

[ozbob]

The rising price of oil is relentless. No amount of denial will change that outcome.
Now is the time to substantially ramp up rail.  It will be sustainable in the long term.

The general fuel subsidy in Queensland is pointless.  That money should be redirected to public transport which will be of much more long term benefit to Queensland.

A good thing is that the rising price of oil will endear change hopefully.
The looming crisis has been obvious to many, except collective governments apparently.  The Queensland Minister for Sustainability Mr MacNamara is one who is well informed and has flagged the looming crisis.  The rest of our government wants to build more roads and tunnels!!

[haakon]

JCU has recieved funding to develop algae derived Biodiesel.

http://www.jcu.edu.au/top/JCUPRD_032050.html

I'd love to see QR trial Biodiesel in one of their freight locomotives.

[ozbob]

Interesting report from the USA

Americans Driving At Historic Lows  --> http://www.dot.gov/affairs/fhwa1108.htm

[ozbob]

From the Courier Mail click here!

Budget blown at the petrol bowser

Budget blown at the petrol bowser
Article from: The Courier-Mail

Melanie Christiansen

May 31, 2008 12:00am

SPIRALLING petrol prices are eating into the wages of workers in southeast Queensland - with fuel bills now rising four times as fast as pay packets.

While escalating housing costs are putting families under pressure to move further away from the city, new RACQ figures prepared for The Courier-Mail show they are paying the price in petrol costs.

The data shows the price of petrol around Brisbane has surged almost 60 per cent in only four years, while the average weekly wage has risen about 15 per cent.

In some cases, commuters are paying $62 a week more for petrol than they were in 2004.

The worst affected are those commuting to jobs in the city from the Gold and Sunshine coasts, who are now facing weekly fuel bills of almost $170.

But even from Wynnum, on Brisbane's southern bayside, the cost of the weekly commute has reached about $47 in petrol, on top of continuing expenses ? such as registration, insurance and maintenance ? which are even more costly than fuel.

People living at Slacks Creek on Brisbane's southside are now spending about $41 a week for fuel to travel to the city, while those travelling from Ipswich are paying $76 a week for petrol.

RACQ spokesman Gary Fites said the impact of rising petrol prices was magnified for those living further away from the city.

"It's more than just a fuel price issue for many of those people," he said.

"They are living in outer suburbs for housing affordability reasons. A greater proportion of those people will drive older, less fuel-efficient vehicles."

And Mr Fites said for people under financial pressure, petrol prices were one of the hardest costs to manage.

"It'll be one of the last things people stop buying, because they need petrol to meet work commitments or the commitments in running a family. They will buy the petrol and then worry about how how to cut back in other areas," he said.

It is a problem Kellie Grimsey of Beenleigh has confronted in the past year. Travelling daily to her office at Milton, Ms Grimsey said her petrol bills had rocketed to about $120 a week.

"I've had to budget a bit more, cut back on a few things in life, like going out," she said.

Ms Grimsey said that if the price of petrol continued to rise, she might be forced to get the train, even though that would mean giving up her regular swimming training.

Higher petrol prices also have affected Paul Sinclair, who commutes daily between his home at Wynnum, his city office and lecturing commitments at Kelvin Grove.

In five years, his weekly fuel bill has doubled to about $80 and he worries about what is to come.

"I saw a story about how we could see petrol as high as $2 a litre and that certainly would be a bit of a problem," he said.

Makes the need to ramp up our rail network in terms of capacity and frequency even more urgent!

[ozbob]

Folks, it is time!

Interesting perspective from the USA, Dallas.

--> As gas prices soar, mass transit winning more converts in Dallas area

[ozbob]

The Queensland Government of late has come up with some amazing knee jerk reactions.  I think this one takes the cake  IMHO ...

Apart from putting the interstate road transport industry and interstate tourists off side, it is flawed money anyway.  Cents are irrelevant when we are looking at dollar price rises.  The money for the subsidy should be spent on sustainable transport options for the future.  Seems most of the bloggers at News.com.au on this article think much the same 

Queensland motorists have not really received the benefit of it in any case, it is siphoned off as more profit for the oil companies.

From the Courier Mail click here!

Queensland fuel subsidy to apply at the pump: Bligh

Queensland fuel subsidy to apply at the pump: Bligh
Article from: The Sunday Mail (Qld)

By Darrell Giles

June 01, 2008 01:00pm

QUEENSLAND Premier Anna Bligh says her 8.35c subsidy scheme will take the profits back from oil companies and put them into the hands of motorists.

Ms Bligh said the State Government was looking at introducing a new scheme which will allow the 8.35 cent a litre subsidy to be given directly to motorists at the point of sale.

Under the new proposal, motorists will swipe a bar code on their drivers licence at the point of sale to reduce their fuel bill.

A state inquiry last year revealed Queenslanders were paying 2?-3? a litre more than they should because fuel companies had not passed on the full state subsidy.

In the new scheme, motorists will swipe a barcode stuck on their driver's licence that automatically deducts 8.35? a litre off their petrol or diesel bill at the checkout.

"Up to $100 million a year is not going into the pockets of motorists and we are going to put an end to that," Ms Bligh said.

"This means that whatever the price of petrol is at any station at any time in Queensland, if you're a Queensland driver and you have got your driver's licence on you then you'll get your fuel 8.35 cents a litre cheaper."

She said the government would consult with industry figures and other motoring bodies to ensure the proposal went ahead smoothly.

It is set to be introduced early next year.

She denied petrol companies, in an effort to keep profits up, would increase advertised prices.

"All petrol stations in Australia will be subject to monitoring from the ACCC (Australian Competition and Consumer Commission) and with the new FuelWatch program.

"We are determined to put (the subsidy) in the pockets of motorists not in the profits of oil companies."

The downside will be that advertised pump prices throughout the state will jump alarmingly to match Sydney and Melbourne prices. Only Queensland licence-holders will be able to claim the discount, which is likely to spark a backlash from tourists and interstate truck drivers.

Motorists will still be able to claim the 4? shop-a-docket deduction.

The oil industry has been accused of ripping off Queensland motorists by up to $180 million a year by not passing on the full subsidy.

Yesterday the average price of a litre of unleaded fuel in Brisbane was $1.51.3.

In Melbourne the average price was $1.57.9 and in Sydney $1.58 ? which again proved that the full 8.35? state subsidy was not being passed on to Queensland motorists.

The Government's new point-of-sale discount system is set to be introduced early next year.

Premier Anna Bligh said: "The subsidy was introduced for one reason ? to make fuel cheaper for Queenslanders.

"Sadly it appears that too often the real winners have been the oil companies. We want to put a stop to that."

The State Government subsidises fuel by $540 million a year.

Treasurer Andrew Fraser said the Government would work with the RACQ and Motor Trades Association Queensland to work through the details of the new scheme, for an Easter 2009 start-up.

RACQ external relations general manager Gary Fites welcomed the scheme, saying it was the best option put forward in the 11 years of the subsidy to pass it fully on to motorists.

He said there were privacy concerns about handing over a licence to a station attendant, but the Government had assured him motorists would conduct the swipe.

- with AAP

[ozbob]

From Courier Mail click here!

Petrol pain? Take a bus

Petrol pain? Take a bus
Article from: AAP

June 06, 2008 08:43am

BETTER public transport is part of the answer to soaring petrol prices, Prime Minister Kevin Rudd says, as Australians are hit by record fuel bills.
Mr Rudd today said he had already raised the issue of working with the automotive industry to manufacture hybrid fuel-efficient cars in Australia, producing more savings for motorists and more fuel-efficient transport.

"Secondly, hasn't the time come for some decent, decent public transport systems, invested in by the national government across our major cities so people don't burn their petrol prices on the way to work," he told the Nine Network.

Mr Rudd said petrol price variations showed why a petrol price commissioner was needed to put maximum competition pressure on oil companies.

"That is what, in part, this debate about FuelWatch has been and the Liberal Party have voted against it," he said.

"We have simply said: why should motorists, for example in Sydney, know that yesterday there was about a 16 cent per litre difference between what one petrol station was offering in one part of Sydney to what another petrol station was offering at the other.

"That is consumer choice. That is consumer power. We have sought to act in support of the consumer in a very difficult environment where world oil prices are going up."

Mr Rudd said he talked with aviation industry representatives about rising fuel costs and the government was staying in close contact.

"But what can I say: it is a very, very difficult period we are going through. We haven't had this sort of pressure on global oil prices since the 1970s, 400 per cent they have gone up just since the Iraq war," he said.

"What we need, therefore, is a long-term strategy for dealing with this part, from helping families and individuals and pensioners and carers with their financial needs through their budget now.

"That is why we are seeking to do what we can through budget support - that is why the measures were brought in through the budget - but also longer term."

[ozbob]

From News.com.au  click here!

Oil surges to new heights on Mideast fears

Oil surges to new heights on Mideast fears

From correspondents in New York

June 07, 2008 06:01am
Article from: Agence France-Presse

CRUDE oil prices went on a record-setting surge overnight as fears of a new Middle East conflict were fanned by comments from a top Israeli official about Iran.

New York's main oil futures contract, light sweet crude for July delivery, leapt $US10.75 a barrel - its biggest one-day jump ever - to close at a record $US138.54.

In London, Brent North Sea crude for July crossed $US138 for the first time and hit $US138.12 a barrel.

It eased back to settle at $US137.69, up $US10.15.

Analysts said the sharp price spike was a reaction to remarks by Israeli Deputy Prime Minister Shaul Mofaz, who is also transportation minister, reported by the Yediot Aharonot newspaper.

"If Iran continues its nuclear weapons program, we will attack it,'' he told the daily, stressing that such an operation could only be conducted with US support.

"Other options are disappearing. The sanctions are not effective. There will be no alternative but to attack Iran in order to stop the Iranian nuclear program,'' Mr Mofaz said.

Antoine Halff, an analyst at Newedge Group, said: "The Mofaz comments bring home the point that the dispute over Iran's nuclear program remains unresolved and that the risks of military confrontation are indeed increasing.

"This will likely be a growing source of market volatility until a solution to the dispute is found.''

Wachovia Securities's Eric Wittenauer said Mr Mofaz's remarks "are the most explicit threat against Iran yet".

[ozbob]

From Brisbanetimes click here!

World oil prices hit new high

World oil prices hit new high
June 7, 2008 - 2:19PM

Crude oil prices went on a record-setting surge today as fears of a new Middle East conflict were fanned by comments from a top Israeli official about Iran.

New York's main oil futures contract, light sweet crude for July delivery, leapt $US10.75 a barrel - its biggest one-day jump ever - to close at a record $US138.54.

In intraday trade and in record time, the benchmark contract crossed 137, 138 and 139 dollars for the first time and soared to an all-time high of $US139.12.

In London, Brent North Sea crude for July similarly smashed barriers on its way to a new intraday high of $US138.12 a barrel. It eased back to settle at a record $US137.69, up $US10.15.

Both futures contracts far exceeded their prior record highs set on May 22: $US135.09 in New York and $US135.14 in London.

Over the past two days, crude oil has leapt about $US16 as the market reacted to a new decline in the US dollar after the European Central Bank signalled an interest rate hike yesterday and the US reported a sharp rise in unemployment overnight.

Compounding the dollar squeeze were remarks by Israeli Deputy Prime Minister Shaul Mofaz reported by the Yediot Aharonot newspaper, analysts said.

"If Iran continues its nuclear weapons program, we will attack it," Mofaz told the paper, stressing that such an operation could only be conducted with US support.

"Other options are disappearing. The sanctions are not effective. There will be no alternative but to attack Iran in order to stop the Iranian nuclear program," Mofaz, who is also transportation minister, said.

Antoine Halff, an analyst at Newedge Group, said: "The Mofaz comments bring home the point that the dispute over Iran's nuclear program remains unresolved and that the risks of military confrontation are indeed increasing.

"This will likely be a growing source of market volatility until a solution to the dispute is found."

Wachovia Securities' Eric Wittenauer said that Mofaz's remarks "are the most explicit threat against Iran yet".

A former Israeli defence minister and armed forces chief of staff, Mofaz hopes to replace embattled Ehud Olmert as prime minister and at the helm of the Kadima party.

"Noting Olmert's political troubles, Mofaz's remarks may have been made for domestic consumption, particularly since he probably thinks he should be preparing for a run at the nation's top office," Wittenauer said.

Halff said the return of the Iranian risk premium "calls for a careful assessment of the potential oil supply impact of military strikes on Iran," the world's fourth-largest crude oil producer.

"The supply consequences of such a hypothetical development might not be as severe as they seem," the Newedge analyst added.

The US dollar continued to weaken against the euro, which firmed to above $US1.57, a day after ECB president Jean-Claude Trichet made hawkish comments on inflation after leaving rates unchanged as expected.

The greenback was further pressured by the US Labour Department report showing the US unemployment rate jumped unexpectedly by a half percentage point to 5.5 per cent in May, the steepest increase in more than two decades.

The US economy shed 49,000 jobs in May, almost twice the number of the prior month, marking the fifth monthly consecutive decline, the Labour Department data showed.

The weakening dollar boosts oil prices because it makes crude relatively cheaper for buyers using other currencies, analysts said.

Oil's surge also found support from investment bank Morgan Stanley's prediction today that light sweet crude will hit $US150 by July 4, the US Independence Day holiday, because of tight supplies.

AFP

[ozbob]

From Courier Mail click here!

'Petrol price will hit $2 a litre'

'Petrol price will hit $2 a litre'
Article from: AAP

June 07, 2008 05:30pm

PETROL in Australia could soon reach $2 a litre unless governments act to stop the manipulation of crude oil prices, the NRMA motoring organisation says.

NRMA president Alan Evans said New Zealanders were already paying $NZ2 a litre and Australian drivers will be paying close to $1.80 next week.

His comments come after the price of crude oil shot up $US11 to a new high above $US139 a barrel overnight.

"What you're going to see next week is those records of $US139 for a barrel of crude flow through," Mr Evans said.

"We've seen prices in the mid-$1.60s and you'll see it running up to the mid-$1.70s next week."

Mr Evans said commodity speculators were manipulating the market and forcing up the price of crude oil.

He said unless governments took action to stop the manipulation, "I wouldn't rule out the possibility that we're going to see $2 a litre".

"I was in New Zealand yesterday and in Wellington it was $NZ2 a litre," Mr Evans said.

"Our nearest neighbour is experiencing $2 a litre already."

The motoring organisation boss said governments around the globe needed to recognise that high fuel prices were starting to pose a "very serious economic problem for the world".

They should follow the lead of the United States and the United Kingdom and hold inquiries into commodity speculators, he said.

"They've moved out of the sub-prime market and those fields where they were having a ball and now they're into oil."

Mr Evans said demand for oil had increased by four per cent in the last year but the price of crude had increased by more than 100 per cent.

"It doesn't quite add up," he said.

Australians will be paying at least $1.75 a litre for petrol next week partly because local oil companies inflated their refinery margins for the long weekend, pushing up prices, Mr Evans said.

"That means they've got a higher base to springboard off next week to pass through that record jump in crude oil prices that occurred overnight.

[curator49]

Somebody in the Middle East just has to sneeze now and the oil price rises.

A politician in Israel makes a threat and the  price jumps $10 or $11.

There are some people in this world who are making big bucks on this commodity. While oil is a finite resource and some day will run out there are those who are speculating, not on how much oil there is left in the ground or the cost of extracting it, shipping and processing it into petroleum products rather they are reaping big profits from the world's nervousness about whether country A threatens country B or some terrorist who blows up a pipeline and disrupts a minor supplier in the world oil industry.

Buses rely on oil to make diesel fuel. Bus fares will rise as the cost of diesel rises.

Isn't it time now to be investing it on both electrified light and heavy rail? Electricity can be generated from sources other than coal. I see there are light rail systems where the electricity is generated by wind farms.

While nuclear generated electricty does not seem to be "the falvour of the month", I don't agree that it should be totally discounted as an alternative source of electrical energy.

[ozbob]

Solar tower power generation has a great future in Australia I believe.  Electricity that is sustainable for light and heavy rail.

eg. http://www.enviromission.com.au/

[mufreight]

Ahh this is all part of a secret project by the Premier, build an underground road system that no one will be able to afford to use because of the price of fuel and tolls that solves the congestion problem, unfortunately the gradients and curviature of the road tunnel system are too great for the system to be converted to rail.
But this is the Smart State, I know as you will when the pain in your back pocket increases.
Cheers.

[curator49]

Sorry, I should have mentioned solar power as well. No form of alternative energy should be discounted. The pros and cons should be assessed in a non-biased way. This includes costs and environmental damage.

Extenders for petrol should also be considerd such as ethanol. Again issues such as production of food crops for biofuels instead of food purposes. Motor vehicle manufacturers in Australia should be told now to make their engines suitable for up to 25% ethanol. It can be done. When seat belts were made compulsory and when engines had to have catalytic convertors had to be fitted and low emission engines fitted the car industry coped. 

Regarding food production Governments are allowing what little fertile arable land we have in Australia to disappear under mass housing.

[ozbob]

From Courier Mail click here!

Government pressures Asia to lower fuel subsidies

Government pressures Asia to lower fuel subsidies
Article from: The Courier-Mail

By Michael Madigan

June 16, 2008 12:00am

The Federal Government will pressure Asian countries to lower their fuel subsidies but Queensland looks set to keep its subsidy.
Finance Minister Lindsay Tanner said Australia should pressure Asia to remove subsidies and price caps that distorted prices across the region.

"We can put pressure on other countries to remove subsidies that do distort choices that people make and do reduce the extent to which they can move into other technologies," Mr Tanner said.

He conceded the shift of millions of people across Asia from poverty to first world living standards was helping to drive our commodities boom, "but at the same time they're also demanding more petrol", he said.

Indonesian motorists pay as little as 65c a litre for fuel, while China has a cap on fuel prices.

His comments came as Saudi Arabia planned to boost oil production next month because of concern that record prices might dampen economic growth and lead to lower oil demand.

The Organisation of Petroleum Exporting Countries cut its 2008 estimate of growth in world oil demand because of high prices and a slowing world economy.

Industry Minister Martin Ferguson said the Federal Government's position on Asian subsidies did not hold for Queensland's $541 million-a-year subsidy scheme.

Premier Anna Bligh has vowed the subsidy would remain despite a recent finding that it was not passed in full to motorists by petrol companies.

Mr Ferguson said the subsidy did not act as a "corrupter" of global fuel prices.

"The Queensland motorist is not insulated from the international price of oil," he said.

"This is a taxation arrangement which is a matter for the Queensland Government to determine."

Opposition Foreign Affairs spokesman Andrew Robb said Australia should be careful about lecturing its neighbours on any matter, fuel included.

"I find it a bit presumptuous that ... we've got the Australian Government now out again virtually by press release lecturing to Asia," he said.

Treasurer Wayne Swan, just returned from a global tour, including the G8 meeting of industrialised countries in Japan, said there was no doubt global inflationary pressures such as food and oil price rises had become the most significant challenge facing the global economy.

"I pursued these issues strongly in my meetings at the OECD, in London and in Beijing, and these challenges rightly took centre stage at the G8 finance ministers' meeting I attended in Osaka," Mr Swan said.

Saudi Arabia's King Abdullah views current oil prices as ``abnormally high'' and is willing to do whatever he can to bring them down to ``adequate levels'', visiting United Nations chief Ban Ki-moon said in Saudi Arabia.

Briefing reporters on his meeting with the Saudi monarch, Ban said they spent a great deal of time focusing on the link between soaring crude prices and the worsening food crisis as well as climate change.

''He acknowledged that the current oil prices are abnormally high due to speculative factors and some other national government policies,'' the UN secretary-general said.

- with AFP

[ozbob]

Personal opinion:  I would prefer to see the Queensland fuel subsidy dropped (no other state has it and they survive) and the money used to ramp up public transport throughout the state.  I think most of the so called subsidy has not been getting through to the motorists in any case, and the proposed bar code scheme on licences is just complicating something which in the end as fuel prices continue to escalate will all become pointless.

[ozbob]

From Brisbanetimes click here!

Fuel tipped to hit $1.75 a litre in next fortnight

Fuel tipped to hit $1.75 a litre in next fortnight
June 16, 2008 - 8:37PM

Prime Minister Kevin Rudd has blamed record high petrol prices on the worst global oil shock for 30 years, but says the government is doing its best to ease the pain.

Resources Minister Martin Ferguson will represent Australia at a meeting of oil producers and consumers in Saudi Arabia on Sunday to respond to the growing outcry about skyrocketing oil prices.

The Saudis have already agreed to raise oil production by 200,000 barrels a day next month, mindful of warnings from Group of Eight (G8) nations that soaring prices could threaten global economic growth.

Mr Rudd says he understands people are doing it tough as petrol prices head towards a record $1.60 a litre, with predictions they could reach $1.75 within a fortnight.

"We get the message loud and clear that motorists are hurting a lot, which is why in this budget there is a $55 billion support package for working families,'' he said.

''(And this) is why we have embarked on a course of action in relation to fuel-efficient cars and which is why ... we have developed a longer-term policy paper on the question of fuel and energy policy for Australia.''

But a Nielsen poll, published in Fairfax newspapers today, shows the public is unhappy with Labor's handling of the petrol problem, an issue it campaigned on strongly in the run-up to last year's election.

It found 56% of voters dissatisfied with the way Mr Rudd was handling the petrol problem, while 78% wanted the government to take action to bring fuel prices down.

Of people who want action, two out of three favour a cut to the tax on fuel - as proposed by the coalition - and 22% support Labor's FuelWatch scheme.

Mr Rudd acknowledged FuelWatch was only a "modest measure''.

"We have never sought to describe it as much more than that - remember the savings that we indicated were possible under that were something like 1.9 cents per litre,'' he said.

"What we are talking about worldwide are massive fluctuations in price, tens and tens of cents a litre brought about by this global oil shock.

"We have the greatest global oil shock in 30 years which is reverberating across every economy in the world but we have a plan going forward.''

Opposition Leader Brendan Nelson challenged Mr Rudd to prove he had a plan.

The opposition has pledged to cut fuel excise by five cents per litre if it wins government.

"Mr Rudd needs to stop mucking about. He's being talking about watching the price of petrol as if it will bring it down,'' Dr Nelson told reporters.

"The one thing Australians know that Mr Rudd can actually do is cut the excise on petrol, we need action and we need it now.''

Mr Ferguson warned there was no simple solution to the record oil prices but welcomed Saudi Arabia's move to increase oil production.

"We all appreciate Saudi Arabia is seeking to play a constructive role to encourage all the stakeholders to work together in an endeavour to stabilise the world petroleum market,'' Mr Ferguson told parliament.

"I take note of its decision of the last couple of days to increase oil production from July ... as a further important step forward.

''(But) there is no simple solution to the problem of record oil prices and no one nation can solve the burden on its own.''

AAP

[ozbob]

From Brisbanetimes click here

Petrol to keep rising, interest rates to steady

Petrol to keep rising, interest rates to steady
Nassim Khadem | June 18, 2008

PETROL prices in capital cities could reach almost $1.90 by the end of the year, economists have warned after seeing new Reserve Bank forecasts on inflation.

But the bank has better news for home buyers, with minutes from its June 3 board meeting adding to hopes that interest rates will remain on hold.

The minutes, released yesterday, suggest fuel prices will rise by 12% over the June and September quarters, boosting the inflation rate by a quarter of a percentage point in each quarter.

Commsec economist Savanth Sebastian said the forecasts suggested that petrol prices, already tipped to hit $1.75 within a fortnight, will get close to $1.89 nationally. Prices in Queensland should be 8c/L cheaper due to the state's fuel subsidy.

The forecasts came a day after oil hit a record of almost $US140 a barrel on Monday, prompting British Prime Minister Gordon Brown to call it "the most worrying situation in the world" .

The alarm was reflected in a Fairfax/Nielsen poll published this week, with 78% of those surveyed wanting the Government to intervene on petrol. Of these, 67% wanted a cut in fuel tax.

On a more positive note, the Reserve Bank minutes said economic growth was moderating in response to interest rate rises, and over time this should reduce inflation. But it said current petrol prices "implied a rise in the automotive fuel component of the Consumer Price Index of around 6% in each of the June and September quarters".

The Reserve board also discussed the May federal budget, saying the $22 billion surplus would have a "mildly contractionary" effect and help slow the economy. It noted that despite a strong labour market, there had not been a wages break-out, and that sentiment in international financial markets had continued to improve in the past month.

Overall, while inflation had picked up to an "uncomfortably high rate", board members noted a moderation in demand ? reflected in flat retail sales, declining household and commercial loan approvals, lower growth in housing and business credit, and subdued business and consumer confidence.

Economists said the minutes confirmed their view that interest rates would stay on hold for the time being.

In other developments:

■ Australia recorded its biggest fall in home building starts in two years in the March quarter, as higher interest rates and a slowing economy took their toll, the Bureau of Statistics reported.

■ A survey of 1500 people conducted by Sensis found that consumer confidence dropped to its lowest level in four years in May.

■ Qantas announced it would close the Mildura maintenance base for its regional airline, QantasLink, with 20 jobs to go. QantasLink will also axe services from Melbourne to Wollongong and Newcastle, and accelerate retirement of six Dash 8 100 planes in response to fuel costs.

[ozbob]

From Courier Mail click here!

Petrol prices hit $1.60 in Brisbane

Petrol prices hit $1.60 in Brisbane
Article from: The Courier-Mail

By Leanne Edmistone

June 19, 2008 10:40am

BRISBANE petrol prices have hit $1.60 a litre, as crude oil prices rose again overnight. But southern capitals are suffering even more, paying over $1.70.

Pump prices ranged from 147.9c to 160c in Brisbane this morning. RACQ spokesman Gary Fites said motorists needed to get in quick to avoid paying top dollar as the weekly price cycle hit its peak.

Mr Fites said prices would peak around $1.60 but there would still be "bargains" to have throughout the day, especially at independent service stations.

Crude oil prices rose overnight amid news of a drop in US stockpiles and concerns about a possible strike in key producer Nigeria.

Prices rose about $US2.70 a barrel, to settle about $US136.

The weekly report from the US Energy Information Administration revealed that crude reserves had fallen by 1.2 million barrels to 301 million barrels for the week ending June 13.

Meanwhile, NRMA president Alan Evans has called for a global government crackdown on speculators who are contributing to soaring oil prices.

Petrol bowser prices, which hit $1.72 in Sydney, Melbourne and Adelaide yesterday, are tipped to exceed $2.30 a litre next year amid reports of speculators helping to drive up prices.

Mr Evans said that in the short term governments collectively needed to look at means of curbing market exploitation, and Australia needed to talk to the US and UK.

[ozbob]

Going up and up and up .....

From the Courier Mail click here!

Petrol prices push $1.65

Petrol prices push $1.65
Article from: The Courier-Mail

Darren Cartwright

June 19, 2008 03:00pm

SOUTHEAST Queensland petrol prices continued to soar even higher today and were nudging $1.65 a litre at some Brisbane service stations during peak-hour.

The BP service station at Ascot was the most expensive surveyed by couriermail.com.au - charging $1.63 per litre.

The cheapest was the Shell service station on Lutwyche Rd, Windsor, which was $1.56.9.

The only thing saving Queensland motorists from paying around $1.70 per litre, which was the price facing road users in Sydney and Melbourne this morning, was the State Government's nine cents-a-litre petrol subsidy.

Crude oil prices rose overnight amid news of a drop in US stockpiles and concerns about a possible strike in key producer Nigeria.

Prices rose about $US2.70 a barrel, to settle about $US136.

Meanwhile, NRMA president Alan Evans has called for a global government crackdown on speculators who are contributing to soaring oil prices.

Petrol bowser prices are tipped to exceed $2.30 a litre next year amid reports of speculators helping to drive up prices.

[ozbob]

One has to be a circumspect with 'soap box' polls, nevertheless petrol prices are impacting.  There is data to suggest that as petrol increases in the price the loadings on our public transport will increase substantially.  This is not a bad thing providing the capacity of our public transport is increased commensurately.

(see ----> Commute numbers increase)

From Courier Mail click here!

Queensland drivers brace for $2 a litre petrol price

Queensland drivers brace for $2 a litre petrol price
Article from: The Courier-Mail

June 21, 2008 12:00am

QUEENSLAND drivers believe they are heading for petrol hell, with 86 per cent saying they expect petrol to reach $2 a litre by the year's end.
A couriermail.com.au Soapbox poll found only 13 per cent of respondents expected fuel prices would stay below $2 a litre.

Other Soapbox polls this week found motorists were angry at perceived Government inaction on petrol prices and  12 per cent thought it had taken enough steps to combat prices.

Three out of four drivers also said rising fuel prices had forced them to cut back on household spending.

But  only 21 per cent said they would pay more for a hybrid car (than its conventional-engined alternative).

And when it came to increased patronage of buses and trains, couriermail.com.au readers made it clear petrol was not dear enough yet to make them take public transport.

Less than a third (28 per cent) said rising fuel costs were making them take public transport more often, while 71 per cent were not.

[ozbob]

From Brisbanetimes click here!


Oil passes $140 a barrel

Oil passes $140 a barrel
June 27, 2008 - 7:34AM

Oil prices have crossed $US140 a barrel for the first time in New York and London amid a declining dollar and after OPEC warned prices could hit $US170 this year.

New York's main oil futures contract, light sweet crude for August delivery, shot up $US5.50 dollars to trade as high as $US140.05 dollars per barrel.

In London, Brent North Sea crude for August jumped $US6.05 dollars to $US140.38 dollars.

The price of crude oil shot up on the new dollar weakness, which makes the dollar-denominated commodity cheaper for buyers using stronger currencies.

The dollar lost ground against the euro a day after the Federal Reserve left interest rates unchanged.

Analysts at Barclays Capital said interest rates in the United States were likely to remain lower than those set by the European Central Bank for the eurozone, making the euro more attractive to investors than the US unit.

The president of the OPEC, Algerian Energy Minister Chakib Khelil, said crude could hit a record $US170 dollars this year owing to a weak US currency and geopolitical unrest.

"I predict probably prices of $150 to $170 this summer," Mr Khelil told France 24.

"It (the market) will probably fall a bit towards the end of the year."

The OPEC president added that a weak dollar was the main cause of surging oil prices.

AFP