Escalating tensions in the Middle East and the continuing war
against terrorism has pushed the price of oil above US$27 per
barrel, threatening to hike petrol prices above $1 in country
NSW.
In Dubbo today for a meeting of the National Roads and
Motorists' Association Limited (NRMA) Board, NRMA CEO, Mr Rob
Carter, said the heavy burden faced by country communities could be
worsened by the spectre of war in the Middle East."The price of oil has again risen above US$27 per barrel in
response to tensions in the Middle East and the ongoing campaign
against terrorism," Mr Carter said.Mr Carter said Iraq had placed further pressure on world oil
prices by calling on Arab nations to use oil as a weapon against
Israel and western nations."This can only spell trouble at the bowser for country
motorists, who already face a petrol price burden 23 per cent
higher than the national average and up to 36 per cent higher than
prices in metropolitan Sydney," Mr Carter said."Dubbo motorists have already been hit hard in the past 12
months, paying on average five cents per litre more than Sydney
motorists.""Dubbo motorists have already been hit hard in the past 12
months, paying on average five cents per litre more than Sydney
motorists."NRMA's burden index is constructed using regional data about
household expenditure on transport fuel (petrol and diesel) and
average weekly income.Mr Carter said the price of petrol at 19 Dubbo service stations
surveyed by the NRMA during Easter was resting at around 90 cents
per litre."NRMA is concerned petrol will jump beyond A$1 if current world
trends continue and there is no major change to the value of the
Australian dollar," Mr Carter said."It's time the Federal Government focused on country communities
during its consideration of the report of the Fuel Taxation
Inquiry."NRMA research has found the biggest gap between petrol prices
in a capital city and the rest of the state is to be found in New
South Wales."The Federal Government must develop measures to alleviate the
particularly heavy burden that high fuel excise places on people in
rural and remote communities."The Government needs to enact policies that encourage higher
volume, lower margin retail networks in rural areas to deliver
lower prices, while ensuring motorists don't face difficulties in
maintaining access to fuel outlets."Mr Carter said there was no reason to expect a petrol shortage
in the foreseeable future.