Tuesday, Sep 06, 2005 at 19:49
From News Ltd this evening:
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Outrage at record petrol prices
From: AAP
By Danny Rose
September 06, 2005
FUEL companies and service station operators have been accused of profiteering on the back of global oil woes, as city petrol prices surged to almost $1.40 a litre.
The new top price for fuel paid by Australian motorists was reported in suburban
Melbourne and
Sydney today, where petrol was selling for just 0.1c below $1.40 a litre.
The prices drew heavy fire from independent fuel price assessors and peak motoring bodies today.
"Motorists are being ripped off by oil companies, and it's not warranted in any way, shape or form," New South Wales Service Station Association chief executive Ron Bowden said of the price prices.
He said "opportunism" was driving the market as oil companies raised prices in the wake of Hurricane Katrina and its impact on refinery capacity in the Gulf of Mexico.
"Crude oil prices have actually gone down, but (petrol) prices have shot up because of the shutdown of the refining capacity over there, and that's reflected world prices," Mr Bowden said.
"The oil companies are just passing that on to Australian motorists even though their costs haven't gone up."
Mr Bowden called on the Federal Government to step in and regulate the industry, warning that motorists would face further hikes if it did not act.
Petrol prices in other states today include $1.35 in South Australia, $1.31 in Western Australia, and up to $1.30 a litre in Queensland, where a State Government subsidy applies.
Independent monitor FUELtrac managing director Chris Kable said the surging fuel prices defied a drop in crude oil prices, from $US70 a barrel last week to $US66.44 overnight.
"Crude oil has dropped but prices have gone up 5c a litre – figure that one out," Mr Kable said today.
The Royal Automobile Club of Queensland (RACQ) said oil companies were realising margins of up to 25 cents a litre between the refinery and the bowser.
RACQ external relations manager Gary Fites also said "overcooked" prices could come back to haunt fuel companies, by reducing demand from motorists and negatively impacting on the wider economy.
The peak motoring body's Victorian branch (RACV) meanwhile hit out at
Melbourne service stations, which it claimed had made a pre-emptive and "excessive" price rise after a jump in the wholesale prices.
"It has only happened at a few
places and it is quite unacceptable and not sustainable," RACV corporate relations manager David Cumming said of the price of $1.40 a litre.
"We recommend that motorists look around, it really is an excessive jump ... this is an ambit claim and it should settle tomorrow at a lower level."
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128699
Follow Up By: Exploder - Tuesday, Sep 06, 2005 at 20:18
Tuesday, Sep 06, 2005 at 20:18
Dam right. It’s just like the banks they can never rase the interest rate fast enough, but when it comes time to lower them again don’t hold your breath.
It is all chit, and they can get away with it because they know that they have everybody by the balls including the government.
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383303