Saturday, 26 August, 2000

Australia petitions OPEC on oil price

Australia will petition OPEC companies with concerns about spiralling world oil prices.

Foreign Affairs Minister Alexander Downer directed ambassadors in OPEC countries such as Iran, Saudi Arabia, Venezuela and Indonesia to make known Australia's concerns about oil production.

Ambassadors will ask OPEC countries to lift oil production in a move to avoid price volatility.

He also said the issue of rising oil prices would be brought up at the next Asia Pacific Economic Cooperation meeting.

Mr Downer said the climbing prices could threaten world economic activity.

"The current situation has already contributed to higher global interest rates," he said in a statement.

"If these pressures continue, they will seriously dampen the growth prospects for the world economy, including OPEC countries.

"Australia is concerned that oil output constraints, which have led to these high oil prices, pose a serious threat to the global economy."

Mr Downer's efforts follow continuing political pressure for the Government over petrol prices which have cleared $1 a litre in many parts of Australia.

Backbench MPs, motorist organisations, the Opposition and some states are demanding the Government freeze next February's excise increase which is expected to add about 2c a litre to fuel prices.

Prime Minister John Howard again warned cutting petrol excise would put pressure on interest rates.

"If you decide to cut the excise level and make it different from what you planned for at the time of the Budget, it means you are reducing the Budget surplus," Mr Howard said.

Labor backbencher Senator Sue West said an increase in diesel prices of 34c a litre in recent months had wiped out the Government's diesel fuel rebate scheme.

http://www.canberratimes.com.au/news2/news7.shtml

-- Martin Thompson (mthom1927@aol.com), August 26, 2000