Petrol prices predicted to rise to $2 per litre

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By Brett Davis | March 31st, 2011

Petrol prices are predicted to rise to all-new levels in NSW in the near future, especially as Middle East oil prices increase. The NRMA calculates the annual fuel bill for the family car could rise by up to $2000, depending on the car and location.

The NRMA says Australian motorists are always left up in the air when it comes to fuel prices as tension in the Middle East governs control. It has even called on the Federal Government to look into new strategies when it comes to depending on oil. President of NRMA, Wendy Machin, said in a recent News Limited report,

“A couple of years ago we would have said $2 was alarmist, but in mid-2008 prices were close to $1.70 and 18 months before it was $1.10, a jump of 60c in that short time.”

“At the moment $1.50 is fairly average at the bowser and we have this strong Aussie dollar well on parity or above that. So it is not unrealistic at all if we see continued strife in the Middle East and the dollar falls that we would be getting up to around $2 a litre.”

Meanwhile, petrol commissioner Joe Dimasi has said that if it weren’t for Australia’s strong currency at the moment, fuel prices would be even higher. However, he did say that a $2/litre cost in the near future isn’t out of the question.

According to Commsec economist Savanth Sebastian, the cost of fuel actually makes up the biggest weekly purchase for families. He says the current average is up $35 compared with this time last year, to $200 per month. This means families are now paying around $2400 per year on petrol. If prices rise to $2/litre, that figure could rise to well over $3000.

toxic_horse

If everyone boycoted coles and woolies servo’s the prices would stay low.
its in our hands but it will never happen. people are fooled into thinking they are getting a bargin with there 4c discount when all they are doing is driving prices higher and higher..

Jean

Might also add the media is also guilty in egging on this inflation. Hasn’t anyone noticed every time some smartass on the news mentions the possibility of a higher price just to buff up a story, the price goes up?

While I’m at this, I think $2 is boring. Why not get over it and make it $3?

MF

you two are completely ignorant…Petrol price in every other nation is rising too because of the instability in the Middle East (and oil reserves are gradually running low, but thats another story). Independents are not any cheaper than coles and woolies either.

Doctor

Maybe the high dollar isn’t such a bad thing.
Aquahead

We unofficially boycot Coles and Wollies, there isn’t a Coles or Wollies station in our area, so we don’t use them.

You have to ask yourself though, why is it that the price of a barrel of oil is nowhere near the price it was in 2007 just before the GFC and the A$ is so strong, and yet we’re paying such high prices?

I think we’re getting gouged! But by who? I really don’t think its Coles and Wollies, i think it’s petrol companies themselves.

fishman

That is a very good question…can anyone shed any light why prices are higher than a couple of years ago when oil price is less and the dollar is stronger?

Also shows what a croc the anti-carbon tax line of pushing up petrol prices to unaffordable levels is – 4.5c a liter is small beer in comparison to whats coming anyway…ditto electricity prices.

http://www.ss.com Thomas

Call me miserable! I have been putting research into electric car conversions. Take your VT Commodore rip your engine out and bolt a 100hp electric motor to it! 5g’s, 1g more then an LPG conversion and will cost your no more then $200 in juice over the next 8 years. Better for the environment and your not getting raped by the oil tycoons and the government!

Just a thought, Im a petrol head! I have my 350 HT in the garage! End of the day, thats my fun car!

Andrew M

I’d like to check your maths that suggests it costs less than $25/year to run an electric commodore conversion.

Thats less than it costs me to run my kettle each year

F1MotoGP

Switch to smaller economical cars, pump up tyre pressure up to 40 psi, use thin oil. If still does not help buy a bicycle. Petrol prices went up in the last 31 years average 5.6% pa every year. This trend will continue by 2024 will be $3 and 2037 $6 a liter. China and India demand for oil increasing so higher petrol prices will stay here.

Jimmy

Absolutely. No one forces people to buy uneconomical cars or to drive everywhere. I don’t think this is such a bad thing. It will force people to rethink their car use. It will push along alternative fuel development and the implementation of electric vehicles. It will put pressure on governments to expand public transport infrastructure too. When 14% of Australia’s emissions are from private vehicle use, anything that makes people stop, think and reconsider their car choices and usage can only be a good thing in the long run.

tekkyy

this Commsec Savanth dude lol…

“$200 per month” is far from the “biggest weekly purchase for families”

what happened to weekly trip to Coles/Wollies?

think the patriotic guys have switched to LPG and E85
http://electric-vehicles-cars-bikes.blogspot.com/ Paul

GO ELECTRIC ASAP!

Colt

you will end up paying more for the car, then try really hard to save on fuel to cover it. BTW, are we talking about the 50,000-dollar mitsu electric smaller than yaris?

F1MotoGP

It is hard to go electric yet. Much better hybrid, diesel or LPG.

Carl

Paul, How do you think country people like me who have to do more than 200K’s return to get to our nearest big town will get on with electric cars??? Unless you can afford to buy a Diesel like in the Disco or the new Terry then we will have to grin and bare it specially if a you are 6 foot 4 and have teenage kids a small hatch back is like torture!!! and unless it’s a diesel it will consume like a V8 fully loaded (i owned a 2006 Yaris for a little while and it consumed 7.5 LT per hundred K’s on highway cycle and my current 5.7 litre V8 statesman does 9.4 fully loaded and air turned on!!)

LN

its not about coles and woolies however those 2 are as bad as each other!

Its about supply and demand it has always been about supply and demand.

Kieran

So the fact that a barrel of oil in 2008 cost the oil companies HALF of what it did in 2007, while petrol prices remained the same or increased, is simply a result of supply and demand? There’s not even the slightest chance that the oil companies jumped at a chance to gouge us big-time? Really?

paulb

LPG,AU manufactures lead the world in LPG technology.We have 150 years of reserves.President Obama has made ststments today about alternative fuels,frustrated with the barrel price of oil.
Nick K

Holden is going to release an LPi commodore with a conformable tank. This will drive like the petrol version, have a full boot, emit far less CO2 and be cheap to fuel… The no compromise LPG car… Diesel and Hybrids will be less appealing when this car is released. I also believe Ford are ready to release an LPi Falcon but I don’t know if they have gone with a conformable tank.

paulb

Nick i seen a Falcon tray top in a car yard the other day.The old LPG system,looked like that dedicated gas system had two 40 litre tanks,guess the new system should have at least 80 litre capasity.
Andrew M

The Ford system due middle of this year will have conformable tanks. Its appaerntly bee listed with 195kw, and based on that Im expecting at least 400nm torque.

It should also drink about 10L.

The Commodore version is due early next year, and I believe its still going to be a dual fuel

paulb

Andrew thoes figures are compatable with the petrol version,in kw,torque+L/100km.Bring it on..

BK

Watch everybody now doin more drive offs without payin at the bowser.
Paul

Oh No, LPG is OK now the price of petrol hits $1.50, $2, $3 a litre. I must laugh, the amount of rubbish that is posted about LPG being dangerous, being a bomb in your boot, will damage you engine, etc. I converted my car at 30,000klm and it has just clocked over 100,000 klm and the system has not given a days worth of grief, the only problem is running out of LPG and having to buy the dear stuff at 65 cents per litre. Maybe I should keep quite and keep this secret to myself, but the smart drivers are those who converted when you got $2000 back of Johnnie H, My car runs a sequential injection LPG system, it has valve lubrication and the oil is changed regularly with good stuff. Every 40,000klm I have my tappets adjusted and she just keeps on purring, my car is not a low tech falcadore, its a VTEC Honda and has run like a dream for the last 100000 klm with no issues at all whilst on LPG. Do the right thing, maintain your car, lubricate your soft valve seats and you will get a dream run, do it on the cheap, don’t run a valve seat saver or stop running petrol through the system and you will ruin your head. Hondas can get valve seat issues on regular LPG and especially E10. My next car will be converted as well, I just prefer LPG now, so much cleaner, no greasy petrol or diesel nozzels or nasty fumes to breathe in during the fill, and YES, the power is the same and torque is better. Do it right and you can win. By the way the environment wins, my car is Euro 4 compliant on LPG and Euro 3 on petrol.

Andrew M

Or you could get this supposed “Low tech Falcon” wich has different internals which negates the need for all these extra lubricants and servicing.

LPG can actually go much further between servicing than petrol, so I dont know what all this fuss is about regular oil and tappet adjustment.

If you need all that maintainence on your Honda sounds like the Falcon is giving it an upper cut on running costs.

Now Ive finished my little rant, Im genuinely interested in your average economy, Im a fan of LPG in general, not just an excuse to stick it to any brand in particular

Karl

Hi andrew, I was sceptical of lpg for a long time, but I was finally convinced to convert my VT by my brother(who is a mechanic).
I’m now an lpg fan. Mine’s a dual fuel mixer set up(being a uni student, I couldn’t afford a vapour or liquid injection system at the time.)
My long term average on lpg is 15.1l/100km, with a worst of 16.8 and a best of 12.5. It was averaging 10.8 on petrol pre. conversion. I’ve had no mechanical issues, but I did fit a valve lube system to be on the safe side.
I really like that lpg is a domestically produced fuel with lower overall emissions. It’s hardly the silver bullet for our economic and environmental challenges, but a step in the right direction.

Andrew M

But is there a silver bullet Karl?? I think not.

For mine LPG is the best alternative, it ticks so many more boxes than other alternative fuels.

I used to have LPG, it was great, and if Fords new LPG system is as good as its shaping up to be Ill certainly be in the show room checking it out

Karl

LPG has got a bad reputation it doesn’t deserve. I was dreading the 20l/100 consumption I was hearing about, but it simply didn’t happen.
I am also looking forward to Holden and Fords new lpg offerings.
I think most people simply don’t understand how superior the new lpg injection systems are to the old stuff. Also, some of the horror stories come from poorly installed/tuned lpg conversions. My advice would be to go to a place that specialises in lpg, rather than just any local workshop. Even better, buy something where you can option it from the factory.

Azza

So i guess with the carbon tax its only going to be higher….
snerd

In this thread: people who do not understand securitized fungible asset classes, futures, etc.
Justin

What if the carbon tax gets implemented??? That will add a couple of dollars to the pump price too…..
Will

Purchased a diesel in anticipation of this. 55ltrs: 900klms in town and over 1.1k country.

Don Quay

If petrol ever gets to $2.00/L what will your diesel cost then? $2.50 or more and the payback period for the fuel savings will be even longer, 15-20 years!

error69

Glade I own a Scooter and motorcycle. Petrol prices don’t affect me much.

Andrew M

Maybe not, but I bet a dirty big pot hole is not so nice

Andrew M

Up here in QLD they are actually talking down the $2 per litre claims.

They say for $2 we would need toe middle east to turn a lot worse AND the aussie dollar to take a significant dive. Neither of those seem like an immediate event.

All this trouble O/S only seems to be strengthening the Aussie dollar.

If oil based fuels become more expensive, so too do electricity prices.
Electricity is said to be double by 2015, and thats with out any carbon tax on top.
We are pretty screwed either way so no way I’d be forking 50K for an electric hatch back, better off sticking it out with the old oil burner
Car Fanatic

What a Crock. Back in July 2008 petrol hit $1.70 a litre. The Aussie dollar was .97 U$ and oil was $147 a barrel. That means oil was $153 Aussie Dollars a barrel. Today petrol is $1.40 a litre, the Aussie Dollar is $1.035U$ and oil is $105 a Barrel. That means oil is $101.40 Aussie dollars a Barrel. By 2008 equation, petrol should currently be $1.13 a litre. The oil companies are having a lend of us all unless the cost of refining oil has increased 50% in the last three years.

I think not.

F1MotoGP

Today’s prices compared to June 2008 ULP91 down 13.6%, PULP down 10.6%, Diesel down 14.8%, LPG down 6.9%. In UK Diesel up 5.3%, ULP91 up 11.6%, Super up 11% and LPG UP by 25.9%!!

Car Fanatic

Give me diesel any day. I average 6.0l/100km and whilst I paid 1.44/l for my last tank that’s $8.70 per 100 k’s. Based on your LPG commodore’s 15.1/100 at 0.65/litre, you are paying $9.80 per 100k’s. Even at $1.55/litre it’s still only $9.30 per 100.

Diesel is king.

Roger Ramjet

What size is you car Car Fanatic? A modern hatch back compared to a decade old large Commodore?
With the new LPG Systems a Large car will cost $6.50/100km!
If we see this technology in a small hatch expect less than $5.00/100km on todays prices without worrying about expensive diesel servicing and blocked particulate filters etc.

Who is king again?
Andrew M

Well what large diesel (commodore equivalent sized) do you get 6.0L/100k out of?? A large Diesel car would be around 8.0L which isnt much better than a humble petrol Camry, or even the petrol Commodore for that matter.

Comparing economy of a small car and large car isnt really apples.

Also, expect major gains in LPG economy starting mid this year with the Falcon, and Im talking improvements of 5L/100

LPG on a large car @ $6.50/100K, or small Diesel Hatch back at $8.70/100K.

LPG will really show who is king now manufacturers are finally giving it a proper go.

It also cant be too long before the dirty old diesel is out lawed……(That ought to get you swinging ha ha ha)

Phil

BMW 5 series, Mercedes E class, Audi A6, Mazda 6, Ford Mondeo

These are some of the large cars that achieve between 5.0 and 6.0L\100km in diesel form and put out upwards of 500NM of torque.

What Commodore style car in diesel form is around 8.0L\100km?
Even a Mercedes ML or BMW X5 2.2 tonne 4WD Diesel does better than that.

Car Fanatic

No Don, you are way off the mark. Diesel on average is currently only 8-10% dearer. For almost two years it was only several cents dearer or about 2%. if petrol reaches $2.00 a litre, diesel will be at worst $2.20 a litre. Given I had a Mazda 3 Maxx Sport in Manual for a year and a half that used on average 45% more fuel than my Diesel Golf, diesel would have to be $2.90 a litre vs petrol at $2.00 before they evened out. Now I paid 30k for the Mazda and 34 for the golf so not a huge difference and certainly not 15-20 years to recoup the difference in price.

Nice attempt at discrediting diesel though.
geegee

Well I’m in London now and Petrol is 134 pence a litre – that’s AUD $2.07 per litre……
Nick K

If Ford are going to release an LPi Falcon with conformable tank… Sign me up! This is so much better than diesel and hybrid options! I just hope Ford knows how to market this revolution. This is the type of innovation that should help sustain the local industry.

F1MotoGP

There is no point to complain or blame the oil companies or the government. Nobody would care.
I did compared some different fuel/technology cars roughly with same size. I used ADR figures and city fuel economy. Fuel prices are from MotorMouth website.

Fuel Price Make City L/100 $/100km
Hybrid 1.419 Camry 6.9 $9.8
LPG 0.559 Commodore19.5 $10.9
Diesel 1.489 Passat 8.2 $12.2
PULP98 1.559 Audi A4 9.4 $14.7
ULP91 1.419 Commodore 12.6 $17.9

Andrew M

Im interested as to why you didnt use combined fuel consumption figures.

If you had the LPG Commodore would have easily leap frogged the Hybrid as most economical

F1MotoGP

I do not like using combined because it looks too good. Average man mostly use his car in the city and some hwy driving. If I am happy with the city fuel economy rest must be better. I agree with you if I use combined Commodore LPG would be $7.93 and Camry Hybrid $8.51 per 100km.

john

In 2009 according to an ACCC report on petrol prices, 41% of the total price of a litre of petrol is federal and state taxes. That means at a ridiculously high $2 a litre, 82 cents of it is taxes. Take the taxes out and the petrol price would be $1.18 without discounting. Of course if only it were that simple. Get rid of state and federal tax revenue from petrol and the governernment would have too find another way too raise the money which of course they will. Taking money from us hard working people comes as naturally too them as taking candy from a baby. The oil companies, merchants are made out too be the crooks, but in reality the biggest crook in the petrol price game is the government. Nobody gets a bigger share than the governments 41% of the total take!

Phil

Well maybe Australians should stop making themselves such a easy target.

- Stop buying automatic transmissions – save $2000-3000 on new purchase and about reduce consumption by around 10%.
Basically every car sold in Europe is manual and many cars don’t offer a automatic option at all. It’s the complete opposite here.

- Stop running a/c constantly (esspecially during winter!). Most people I know leave the A/C on permanently despite our excellent climate.

- Stop buying high output engines. Most Australian’s don’t drive or accelerate fast, yet insist on buying powerful engines.
Many imported cars come here with the largest engine fitted as standard with no smaller option as Australians wouldn’t buy them even though they’d be fine for the average driver.

- and for the 5% of Australians who do actually drive manuals, put it in top gear as soon as possible! Every manual driver I’ve ever ridden with, won’t go into top gear untill about 100km\h despite 60km\h being around the correct speed.

Kieran

Glad to know I’m not the only one! Once, I gave a lift to friends of my parents, and they thought I was nuts for shifting out of 3rd before 70km/h! Car at the time was a Daewoo Lanos (which I only had because we won it in a P&F raffle ten years earlier), and it was just fine in 5th at 60km/h, even when fully-laden. My current car, a Mazda2, will happily pootle along in 5th at 50km/h, provided the ground is level.

Everything you’ve said, Phil, is spot-on!

Car Fanatic

Thank you Phil, finally someone who knows Diesel cars. And where did F1MOTOGP get his Passat Diesel figures from? The Current Passat Diesel runs 6.8/100 not 8.2. The new Passat due out this month is expected to run 5.5/100.

Based on your calculations the current Passat would cost $10.10/100km’s and the new Passat $8.20/100. Therefore making the Passat the cheapest to fuel out of your list.

Diesel is King.

paulb

In SUV”S + Larger type equiptment,trucks,mining,trains.Diesel is King.Hybrid vechles are on the verge of new battery technologys.LPG about to take a technology quamtam leap
Andrew M

I believe 8.2 is the Urban figure, thats probably where that has come from.

Take your figure of 6.8L for the Passat, that makes the Passatt $10.10/100K

Now thw LPG Commodore is 13.4L, that makes it $8.71/100K.

Now Im no rocket scientist, but last time I checked $8.71 is cheaper than $10.10.

LPG is king today!!!
and LPG will be king tomorrow when the consumption comes down to 10L, it will then be $6.50/100K

Even a sili tech commodore beats the Passat on emissions

F1MotoGP

I just checked the Holden website and to my surprise Commodore emission is worse than Passat. Commodore LPG is 217g/km Passat diesel 175g/km.

Andrew M

Yeah, thats Co2. Co2 is actually the good green house gas and I cant for the like of me figure why its sometimes the only one represented.

Look at the overall rating.
for eg, A stock sili tech commodore running this supposidly bad unleaded fuel is a 4 out of 5 stars on the green vehicle guide.
The Passat is only 3.5 stars.
Its a simple fact that diesels are worse for the environment than petrol

F1MotoGP

I get it from ADR and I used city fuel economy because that is the worst always. Diesel is maybe King here but in Europe is already going down as you know we always do catch up. I Germany for each 100 cm³ you pay 6.75 Euro tax on petrol cars but diesel is 15.44 Euro. Mercedes and other German companies now switching to hybrid cars. Price of petrol use to cost around 30% more than diesel now it is around 10% and pay higher tax. It will be the same here. Mercedes want all C class on hybrid by 2013.

Car Fanatic

And yet as stated the New Passat due out this month will run 5.5, which equates to $8.20 which is less than $8.71. But I’ve already mentioned that once.

Goodness me, I don’t even have to repeat myself to my kids.

Again Diesel is King.

Andrew M

“Goodness me”, I said the new LPG tech due also very soon will consume only 10L/100k which is $6.5/100k and quite obviously less than your updated passat figure of $8.20

Did you even read what I said???

I said when both current models are compared, LPG wins, and updated LPG will rival updated Diesel passat which will keep it in front

LPG IS KING

Car Fanatic

Oh I read what you wrote, difference is VW has achieved the 5.5, it wasn’t a claim. Ford claim their new tech will do 10/100km but many articles suggest it will realistically 13l/100 km.

I guess we will have to wait and see if Ford’s wild claims are true or if the experts are on the money. So at 13l which is a slight improvement over the Commodore, you still pay $8.45. as for the emissions well I already knew you were wrong about that.

Check your facts next time, I always do.
Car Fanatic

Oh almost forgot

DIESEL IS STILL KING and will continue to be as the government phases in excise on LPG as of July 2011.

Yep, LPG is going up and up and up every year they raise the excise on it, increasingly dear means your cost per 100 k’s will rise again and again and again.

Be a while before DIESEL loses it’s crown Einstein.

Andrew M

The LPG excise plan starts december this year, and its 2.5cents per litre.

Diesel seems to go up that much each week that goes by

http://Telsa paulb

If Australia went LPG,we would not have to import any Oil.We wouldnt and shouldnt have an energy crisis here
Anne Meguyer

Why are they putting up the price of LPG when it is a exelent alternative to Petrol? We, who have gone over to this, may as well not have bothered, as it is less poulting than petrol, so does the Gov. realy want to reduce Carbon or is it a cover-up for more revenue raising. Also there should be no tax on Hybrid cars!!!If they realy wanted to save the enviroment!