Drivers Hit By Pump In Petrol Price

Illawarra Mercury

Friday May 18, 2007

By VERONICA APAP and AAP

ILLAWARRA motorists will be hoping the fuel in the tank will see them through the weekend as prices creep higher than usual towards the end of the week.

Prices were at $1.40 per litre at Unanderra and Albion Park Rail yesterday and $1.39 at Barrack Heights.

Last Thursday, prices ranged from $1.32 per litre at Jamberoo to $1.38 at Unanderra.

NRMA president Alan Evans said there was no justifiable reason for the price hike.

"If you monitor the changes in crude oil prices, there's nothing to justify the jump which happened pretty much overnight," he said.

"Because of the strength of the Aussie dollar, petrol should be cheaper than it is.

"It's further proof the Federal Government needs to provide the ACCC (Australian Competition and Consumer Commission) with the powers it needs to monitor the actions of oil companies."

CommSec equities economist Martin Arnold said there were seasonal price increases because of the approaching northern summer, when United States motorists increasingly take to the roads.

But he said a good deal of the rise was unexpected and came down to supply problems out of the US.

"Refineries across the US have been reducing operations (due to) machinery breakdown and other unexpected things," Mr Arnold said.

"The Australian petrol price is tracking (the) Singapore gasoline price ... which is just under record highs."

Capacity at US refineries is about 89 per cent for just the second time in 15 years and on Wednesday US motoring group, the American Automobile Association, said prices had gouged through the mental barrier of US$3 a gallon.

The figure was a landmark for motorists in a country not used to paying much for petrol because of low taxes.

EDITORIAL No relief in sight - Page 23