Fuel prices hit everywhere | Lithgow Mercury


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A spike in petrol prices well above $2 a liter will hit hip pockets everywhere, from bowsers to supermarket shelves, experts warn. The warning comes as two National MPs call on the Federal Government to cut fuel excise duties as gasoline prices continue to climb towards $2.20 a liter due to global pressures including war between Ukraine and Russia. Oil prices hit their highest level in eight years due to the refusal of the Organization of the Petroleum Exporting Countries to increase crude oil production, according to the Australian consumer watchdog. “The world was already experiencing high crude oil prices late last year due to continued actions by OPEC and the Russian cartel, and the ongoing northern hemisphere energy crisis,” the president said. from the ACCC, Rod Sims. “The shocking events in Ukraine have pushed crude oil prices even higher, as Russia is a major oil supplier.” NRMA’s Peter Khoury says the increase will inevitably be passed on to consumers through other goods as well, with truck fleets now paying more than double the average fuel price compared to April 2020. “Diesel is the fuel on which our economy is based. agriculture and mining, transportation, small businesses that run fleets,” he told the ABC on Monday. “It’s coast to coast and we never have anything seen like this in history. Your family will feel it at the bowser, in supermarket aisles and everywhere else.” Queensland Senator Susan McDonald and Victorian MP Anne Webster want the excise duty cut of 44 cents per liter to help reduce cost pressures of life. Senator McDonald says the government should also consider suspending at least some of the excise. “We just can’t afford to absorb the prices that we are now looking at,” she said. told the ABC Ms Webster has contacted Treasurer Josh Frydenberg to provide relief to the bowser The government is also facing pressure from Liberal Prime Ministers over the tax, NSW Premier Dominic Perrottet, Premier of South Australia Steven Marshall and Tasmanian Premier Peter Gutwein backing a cut But one of Australia’s leading economists says the excise is not a lever that the e government should use to lower prices. Chris Richardson of Deloitte Access Economics told Sky News that the extra billions pumped back into the economy would push interest rates and inflation higher faster. “People would lose (the money) in terms of higher prices, higher interest rates – that’s not an easy fix because there’s no easy fix,” he said. he declares. Without ruling out an excise cut ahead of the March 29 federal budget, Prime Minister Scott Morrison said any cuts might not make a difference given that gasoline prices have risen from about 1, $70 to $2.20 – more than the total cost of excising. Senior Liberal MP Tim Wilson said the tax was there to pay for the roads and any cuts would have to be offset by lost government revenue. The fuel excise is expected to bring in nearly $50 billion over the next four years, including nearly $47 billion for land transport projects, according to the Australian Automobile Association. Mr Wilson said the release of fuel reserves would only be a temporary solution if global instability fueled by Russia’s invasion of Ukraine caused the price of oil to skyrocket. Australia has joined 30 countries in releasing a total of 60 million barrels of oil from its reserves to stabilize prices after Russia’s invasion of Ukraine caused prices to spike. Thirty million barrels of oil will come from the American strategic reserve. Australian Associated Press


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