Media Statement - 31st October 2007
With petrol prices predicted to reach $1.40 a litre, Federal Labor has challenged the Howard Government to adopt Labor's plan for a full-time national petrol commissioner with powers to act against price gouging and collusion.
This was after petrol prices reached three-month highs of $1.26 a litre last week.
Federal Labor said that it was important that petrol prices at the bowser reflect competitive pressures.
Families are under pressure as petrol prices are getting out of hand again, Chris Bowen said.
This follows analysis from economic experts that Australian petrol prices are set to reach $1.40 a litre as the price of oil in Singapore hits a record high of $US95.93 a barrel.
CommSec's Chief Economist Craig James said this week (29 October):
"With the national average petrol price headed for $1.30 a litre, that means that petrol could again be back above $1.40 on the high days in the weekly petrol discounting cycle."
CommSec's Tom Piotrowski also said this week (29 October):
"What that means is that since the beginning of the year the average household was paying $23 a month more for their fuel bill and that equates to more than an interest rate rise of a quarter of a per cent on $140,000 mortgage."
This week average petrol prices across some of Australia's capital cities were*:
- Sydney $1.24
- Melbourne $1.26
- Brisbane $1.18
- Adelaide $1.23
- Perth $1.28
"There is an ongoing concern amongst Australian motorists about petrol price gouging because they ultimately end up paying the price," Mr Bowen said.
"Australian motorists need to have confidence they aren't paying one cent more than is necessary and their Federal Government is doing everything in its power.
"If it wasn't for the pressure brought to bear by Federal Labor over the last twelve months, the Treasurer would not have set up the ACCC's inquiry into petrol prices.
"The Treasurer now needs to go one step further and adopt Labor's plan for a national Petrol Commissioner that will have sole responsibility to formally monitor and investigate petrol gouging and collusion.
"Rising petrol prices come at a time when families are struggling under the burden of rising interest rates and mortgage repayments along with rises in the cost of living.
These comments come as the ACCC continues with its inquiry that is due to report in mid-December while the Queensland Government has undertaken an inquiry into allegations of petrol retailers not passing on the full fuel subsidy.
Source - www.motormouth.com.au