Motorists fuel up for long weekend horror as petrol prices soar

FALLING Aussie dollar is good news for some. But motorists are going to feel the squeeze at the bowser.

gas

THE Australian dollar's fall is set to squeeze motorists at the bowser this long weekend, despite fuel costs dipping from a four-month high in the past week.

The average Australian price of unleaded petrol fell by 0.9 cent a litre to 143.6 cents a litre in the week to September 25, data from the Australian Institute of Petroleum showed yesterday.

But prices bounced back up today in major capital cities, and the trend looks certain to continue towards the long weekend.

The Courier-Mail reported the average price today in Brisbane today is $1.52 a litre, according to www.motormouth.com.au.

Lynda Schekoske, from Queensland's peak motoring body the RACQ, said anyone who filled up before today's price hike would have saved almost $7 on a 60-litre tank.

"It is bad news for those who missed out, as the next chance to buy cheaper fuel is expected to be at the end of next week," said Ms Schekoske.

Further south, NRMA boss Wendy Machin told the Sydney Morning Herald prices in Sydney could reach up to $1.54 at the start of the weekend.

Commsec chief economist Craig James said yesterday the recent depreciation in the Australian dollar would offset the dip in oil prices.

"While global oil prices have eased, the Australian dollar has eased even further, keeping petrol prices at high levels," Mr James said.

"Petrol is the single biggest purchase the average family makes each week, so the upward drift in prices is bad news for consumer-focused businesses."

Australian fuel prices are based on the Singapore gasoline price.

The Australian wholesale price was at four-and-a-half month highs because the drop in the currency outweighed the fall in the Singapore base price.

"So motorists can expect the upward pressure on pump prices to continue," Mr James said.

Pump prices fell in three Australian cities - Sydney, Melbourne and Brisbane - during the past week, while costs in Canberra rose 5.0 cents a litre to an average 148.8 cents a litre.

Mr James said petrol prices in Canberra had risen 10 cents a litre in the past two weeks, while in Goulburn, 92km from the national capital, they were eight cents cheaper on average at $1.41 a litre.

- with The Courier-Mail