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<DIV><FONT face=Arial><STRONG><FONT size=4>Petrol set to nudge $1.50 a
litre</HEADLINE></FONT></STRONG></FONT>
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<DIV class=articleDetails><BYLINE><FONT size=2><FONT face=Arial>Clay
Lucas</BYLINE><BR><DATE>August 13, 2006</DATE><BR></FONT></DIV></FONT><!--articleDetails-->
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<P><FONT face=Arial size=2>PETROL is on the way to within a whisker of 150 cents
a litre as the latest surge in the global price of crude flows through the
refining chain, RACV spokesman David Cumming warns.</FONT></P>
<P><FONT face=Arial size=2>Motorists were filling up at up to 142.9 cents a
litre in Melbourne yesterday but there is worse to come because it takes about a
fortnight for a jump in the global price of crude to register at local petrol
stations.</FONT></P>
<P><FONT face=Arial size=2>Crude rose last week, hitting $US77.10 a barrel after
BP said it was having trouble at one of its oilfields in Alaska. It eased to
close in New York yesterday morning at $US74.35 a barrel but even at these
levels, record petrol prices are assured.</FONT></P>
<P><FONT face=Arial size=2>The refined price of petrol (what it costs the
service stations) rose two cents a litre on Friday and there is possibly another
two cent a litre rise coming out of Singapore this week — Australian petrol
refiners must retain pricing parity with the refiners there.</FONT></P>
<P><FONT face=Arial size=2>Petrol hit an average 143 cents a litre around
Melbourne on Thursday at the peak of last week's pricing cycle, with some
selling as high as 146.9 cents. On that basis, Mr Cumming said we should get an
average of a record 147 cents a litre soon — and that means up to 149.9 cents
for unleaded at the most expensive petrol stations.</FONT></P>
<P><FONT face=Arial size=2>But it's going to be a brave station owner who puts
150 cents up on the board.</FONT></P>
<P><FONT face=Arial size=2>"Petrol is already at a level that's creating a lot
of anguish," Mr Cumming said. "But people have learnt about the pricing and
there are few filling up when the petrol price peaks and (they buy) on Mondays
and Tuesdays at the bottom of the cycle."</FONT></P>
<P><FONT face=Arial size=2>Economists say the rising cost of fuel is eating into
the household budget and reducing spending in other areas. The average household
is now spending more than $60 a week on petrol, $12 a week more than a year
ago.</FONT></P>
<P><FONT face=Arial size=2>Even a ceasefire in the Middle East would bring
little relief, according to AMP Capital Investors chief economist Shane
Oliver.</FONT></P>
<P><FONT face=Arial size=2>"If this ceasefire works, it might knock a cent or
two off the price at the pump, nothing more," he said. "The oil price has been
up at these prices for some time now, even before Lebanon, so I don't think it
will have a major impact."</FONT></P>
<P><FONT face=Arial size=2>CommSec chief equities economist Craig James said a
ceasefire would only be marginally better for motorists. "This is the only bit
of good news motorists have had for the best part of a fortnight," he said. "And
it will take the best part of a week for any fall in oil prices to be passed
through to motorists."</FONT></P>
<P><FONT face=Arial size=2>RACV's Mr Cumming said motorists would see prices
hover around $1.45 for the next six weeks. "Within the five cent range of where
we are now is where we are going to sit for the next little while," he
said.</FONT></P>
<P><FONT face=Arial size=2>This prediction came as Opposition Leader Kim Beazley
yesterday demanded that the consumer watchdog be given more power to crack down
on oil companies who were ripping off drivers.</FONT></P>
<P><FONT face=Arial size=2>Prime Minister John Howard is reportedly set to
unveil tomorrow a detailed strategy to cut the cost of petrol, and Mr Beazley
demanded the plan include additional powers for the Australian Competition and
Consumer Commission. "Ordinary motorists are now being routinely ripped off," he
said.</FONT></P><A href="mailto:jgoldie@snowy.net.au"></A></DIV></BODY></HTML>