Posted as interest in this issue is high. Story shows that inflation is jumping the price of fuel and feeding inflation. Petrol (unleaded) price of $Aus0.88/litre at bowser yesterday. Diesel average is around $Aus0.85/litre. These are rural Australian prices at Mount Gambier and Millicent. Please note what the truckers say..... STORY LINK

What a difference a year makes
By MICHAEL LUND
06feb00

FAMILIES are being slugged an average $32 a month extra on their petrol bills after a year of price rises.

Pump prices which were on average 57.4 a litre in Brisbane last February had soared to 74.9 by last week. That is $32 a month extra for a one-car family, based on driving 20,000km a year.

Last February, driving 1600km at 57.4 a litre would have resulted in a fuel bill of about $110. But this month, at 74 a litre, it would be about $142.

In rural Queensland, where fuel can cost up to 15 a litre more than in Brisbane, the cost would be even greater.

Petrol prices depend on the supply of crude oil, a factor controlled by Arab-dominated OPEC (Organisation of Petroleum Exporting Countries). Limited supply has forced the barrel price up from $US10 last year to $US27 last week.

On top of that, an extra 0.65 duty was put on a litre of fuel last week, earning the Federal Government an extra $200million.

Every six months the tax on fuel, beer and cigarettes is increased in line with inflation.

Motoring organisations say they can do little to influence world oil prices but want the government to scrap the automatic increases.

RACQ policy officer Sam Weller said the automatic tax rise was "disastrous" for consumers.

"It's inflation fuelling inflation," he said.

Any fuel price rise pushes up transport costs, which increases the cost of most goods.

The latest price rise has hit the state's haulage industry hard.

Brisbane-based Embrey Transport runs up to six trucks transporting goods across the country.

Owner Brad Embrey said the increase had put an extra $1500 a month on the fuel bill for the Brisbane to Perth run.

"If it goes up much further it's going to send a lot of people to the wall," he said.

The rise has also put pressure on public transport operators to increase fares.

Brisbane City Council buses travelled 35million kilometres last year, using almost 16million litres of fuel.

Transport chairwoman Cr Maureen Hayes said the authority was protected somewhat by bulk- purchase deals which kept prices lower than pump prices.

"There's no doubt our fuel prices have gone up but we don't want to put fares up to match," she said.

"Our main aim is to get people on buses, so council has to make up the difference."

The Davis family in McDowall, Brisbane, have four children and need to run two cars  a Holden Commodore and an eight-seat Mitsubishi  to cope with school trips, work and holidays.

Lance Davis, 38, an IT training manager, said they easily clocked up 20,000km a year.

"We don't do any excessive driving, any more than we need to," he said.

"We're averaging about a tank a week in each car and we've certainly felt the pinch from paying more."

That works out to an extra $15-$18 a week on the family fuel bill.

"The prices tend to fluctuate throughout the week so we try to buy on a Tuesday when we've noticed it's cheaper," he said.

Regards from Down Under

-- Pieter (zaadz@icisp.net.au), February 05, 2000

Answers

Remarkably short paragraphs. Must be too hot downunder to speak except between pants.

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-- Squirrel Hunter (nuts@upina.cellrelaytower), February 05, 2000.

Thanks, Pieter! I appreciate the news. Stay cool today.

-- (Ladybuckeye_59@yahoo.com), February 05, 2000.

Pieter

Truckers over here are taking a beating as well, at least some are. Last evening,on one of the local news stations here in Wilkes-Barre, Pa., they actually led-off with a story about the impact of rising diesel prices on the livelihoods of independent truckers. Several truckers were interviewed at a local truckstop and these guys said that they were going to have to quit and sell their rigs because they can not earn living with fuel prices being what they are.Whatever is/are the cause/s of this fuel grunch, it's really getting quite ugly.

-- JR.MINT (guhm@webtv.net), February 05, 2000.