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Petrol tipped to rise by six cents a litre

The price of petrol is tipped to rise by up to six cents a litre overthe next fortnight as the effects of the global financial crisis fadeaway.

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Source: AAP


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The price of petrol is tipped to rise by up to six cents a litre over the next fortnight as the effects of the global financial crisis fade away.

The crisis saw petrol prices plunge as people used less oil.

CommSec chief economist Craig James said those days were over.

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"Motorists here in Australia are going to have to share some of the pain," he told AAP.

Four-month high

Mr James said the price Australian companies paid for their petrol had recently risen by six cents a litre to $1.18 - a four-month high.

That rise hadn't yet been passed through to motorists, but it very likely would be in the coming days.

Mr James forecast a retail price rise of five or six cents a litre within two weeks.

The world oil price has been rising along with demand, as economies rebound from the financial crisis. Mr James said the strong Australian dollar had insulated motorists from recent price rises to some extent until now.

Petrol in Australia cost around $1.20 a litre for much of last year as the crisis drove down demand, but Mr James said a price of $1.30 to $1.35 was more likely for 2010.


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