Petrol pain here to stay as fuel prices head cost-of-living crisis hitting motorists
New data shows fuel prices have jumped up 13.9 per cent in a year, with no relief in sight. Add that to soaring gas and electricity prices driving inflation, and the outlook is grim.
NSW
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Soaring petrol, gas and electricity prices are leading runaway inflation that homeowners hoped was under control, in the first indication that further rate rises may not be off the table.
Electricity prices shot up 12.7 per cent and gas prices rose 12.9 per cent in the year to August, in new figures released by the Australian Bureau of Statistics Wednesday.
But the biggest mover was automotive fuel costs which jumped by 9.1 per cent in August compared to the month before, with prices now 13.9 per cent higher than a year ago.
When he was opposition leader Prime Minister Anthony Albanese was scathing of the Morrison government for letting petrol prices rise and for failing to bring them down.
“Petrol prices are at record highs, putting a major squeeze on family budgets across the country. And the Morrison Government isn‘t doing a thing about it,” he wrote on social media on October 31, 2021.
A month later, Mr Albanese posted a screenshot of petrol prices hitting $1.91 and said: “Families are paying more and more for the essentials under Scott Morrison.”
Liberal deputy leader Sussan Ley said motorists were feeling even more pressure at the bowser now than two years ago but the government was failing to act.
“Anthony Albanese used to talk tough on petrol prices but with prices up to 50 per cent a litre higher on his watch, all we hear is crickets,” she said.
“Inflation is rising and petrol prices are surging on Albo’s watch and Australian families are being smashed by an unrelenting rise in the cost of electricity, gas, mortgage repayments, insurance and groceries.“
The government ruled out relief for motorists on Wednesday by temporarily reducing the fuel excise, saying the move would be “too expensive”.
A spokesman blamed the war in Ukraine for the rising costs and said “billions” worth of cost-of-living measures were being rolled out to help residents.
Experts say a decision by Saudi Arabia to cut back on oil production, combined with the weakening Aussie dollar, means no relief is coming for drivers getting slugged at the pump.
The NSW Government-backed Fuel Check website shows the average cost on Wednesday of a litre of E10 in NSW was up at 208.3 cents a litre, the most expensive it has been this year.
Unleaded 91 is also the highest it has been in the last 12 months, at 209.8 cents a litre.
At 223.9 cents per litre, diesel remains lower than the November peak of 234.8 cents.
Sarah Orr, spokeswoman at Compare the Market, said the latest figures pointed to an “incredibly difficult” period ahead.
“Just as we were starting to see some promising movement on inflation … fuel prices are a concern,” she said.
‘RECORD PRICES’ FORECAST
“We won’t see a change in these any time soon while Saudi Arabia have cut down on production, it could be we’re feeling pain at the bowser for some time.
The lowest prices in Sydney could be found in the west, with Metro fuel Greystanes selling E10 at 189.5 cents, Unleaded 91 at 191.5 cents and diesel at 209.5 cents.
However the west also contains some of the most expensive fuel – with Coles Express Merrylands and 7-11 Merrylands charging 227.9 cents a litre for E10, the most in Sydney.
NRMA spokesman Peter Khoury warned “record petrol prices” could be on the way for September following the upwards trend.
“What is even worse than the August data is the fact that September is looking significantly worse,” he said.
Michelle Hargraves, owner of property repairs company That Lady Tradie, said soaring fuel prices have made business “harder than she has ever experienced”.
The Inner West tradie said her business has made sacrifices to afford fuel, as “petrol is something you just can’t cut, you need it.”
“We are just constantly filling up,” she said.
“Some of the guys that live out west and have asked for raises to compensate for their fuel spends”.
Ms Hargraves said many of her employees were only half-filling their tanks to space out the cost of a full fill.
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