Petrol to hit $2 a litre

Sarah-Jane Carter at the Matilda service station in Bolewski St.

Mike Knott

Poll

How will you handle higher petrol prices?

This poll ended on 12 June 2011.

Nothing will change

6%

I'll feel it but ignore it

11%

I'll have to cut back on luxuries

19%

I'll have to cut back on necessities

36%

I may not be able to get to work

9%

I'm worried - I don't know what I'll do

17%

This is not a scientific poll. The results reflect only the opinions of those who chose to participate.

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MOTORISTS have been warned to expect more pain at the petrol bowser, with one retailer predicting the price could hit the $2/litre mark soon.

And welfare groups fear the flow-on effects of the steep price rises could hit people on lower incomes hard.

A month ago, prices in the Bundaberg region were hovering around 140 cents/litre, but yesterday RACQ said the average price in Bundaberg was 144.9 cents/litre.

That was even more expensive than Brisbane, where the average price, according to the RACQ, was 142.2 cents.

Bundaberg Matilda owner Gary Jensen said the main reason for the increase was that the global oil price had “gone through the roof”.

“Probably since Christmas it has gone up by about US$30 a barrel,” he said.

Mr Jensen said there were a number of factors forcing prices up.

“All the unrest in the Middle East is making it more expensive,” he said.

“We just have to suffer the consequences.”

But Mr Jensen said one piece of good news was that Australia was being partly shielded from the effects by the strong Australian dollar.

“If it wasn't for that, it would be over $2 a litre now. As it is, it will possibly hit the $2 mark in the near future,” he said.

Lifeline Bundaberg business manager Andrew Armstrong said every rise in the price of fuel eroded people's disposable income.

“That's not just confined to people on lower incomes – even middle income earners are finding it tough,” he said.

Mr Armstrong said the flow-on effects of fuel price rises had sent the cost of fruit and vegetables up.

“People have to be very particular about what they buy, and that affects things like their diets,” he said.

“Things like rates and electricity have also seen big rises.”

A spokesman for local charity St Vincent de Paul said several people had come to the office asking for help to buy petrol.

“People are asking for help to pay for the fuel they need to come into town to do courses to help them get work,” he said.

“If it's costing you twice as much to put petrol in your car, that's money you don't have to spend on food for your kids.”

RACQ spokeswoman Lynda Schekoske said petrol prices were the highest they had been since July 2008.

She said the oil price had risen to US$122 a barrel last week and it would take another week before Australian drivers would see price rises at the bowser.

“That will take about a week to flow through to the Australian market, but that means the price of fuel will go up even more,” she said.

Ms Schekoske said things were not looking good for motorists in the future either, with a carbon tax on fuel being considered.