Petrol hits $1.75, recession tipped

The federal government has ordered an investigation into reports some petrol stations have been caught red-handed holding back fuel at the cheapest time of the week.

The price of petrol skyrocketed to a record high overnight, stoking fears that the Australian economy could be lurching towards recession.

The latest surge in prices comes amid ongoing reports some service stations are discouraging motorists from filling up at the cheapest time of the week, often on Tuesdays, by placing "not in use" signs on bowsers.

Some service stations in Sydney were on Thursday morning selling unleaded fuel for $1.75 a litre - more than 17 cents higher than Wednesday's average price of $1.58 listed by the NRMA.

Melbourne and Adelaide also recorded record highs prices of $1.75 for unleaded fuel.

The federal government has asked Petrol Commissioner Pat Walker to investigate claims petrol retailers are misleading motorists as to the availability of cheaper fuel.

Some motorists have reported being able to fill up their cars at bowsers that displayed "out of use" signs.

"There may be a legitimate reason for this," federal Assistant Treasurer Chris Bowen told ABC Radio.

"Often service stations keep a very small amount of petrol in a tank, not enough to keep cars serviced but they keep petrol in there because it's not good practice for them to let the tank run completely dry," he said.

"But it is concerning that this is happening several weeks in a row."

The latest surge in petrol prices have also boosted fears the Australian economy could be sliding towards recession.

"It's starting to push us into very dangerous territory," NRMA president Alan Evans said.

"We're already seeing people cutting back on discretionary expenditure quite significantly because they don't have many alternatives to using their car," he said.

"I'm really concerned it might have such a significant effect that it pushes us towards recession."

He said price jumps like Thursday's could not be excused as part of the weekly price cycle.

"The sort of jumps we're seeing - you just can't shrug your shoulders and say this is part of the weekly cycle - it really is going to badly effect the economy," he said.

If prices continued rising at this rate we might see petrol at $2 a litre before Christmas, he said.

"Hopefully we might see at least a plateau for a while, but if the trend continues, if there are any upsets in the Middle East, then I'm really fearful of what the consequences might be," he said.

Meanwhile in Perth, BP service stations are charging up to 165.9 cents for fuel on Thursday, although the average metropolitan price is $1.59 a litre.

The state government's FuelWatch program, run by the Department of Consumer and Employment Protection, reports 145 service stations are offering unleaded fuel below the average price of $1.59.

Diesel is $1.88 a litre on average, however some petrol station owners are charging as much as $1.92.

The consumer watchdog later cleared a Sydney petrol station of denying consumers access to cheap fuel.

However, Australian Competition and Consumer Commission (ACCC) petrol commissioner Pat Walker says he is still waiting for an investigation to be completed into claims the Shell Coles Express in Padstow put an "out of use" sign on bowsers during the cheapest time of the week.

"I am pleased to indicate preliminary findings by an investigator from the Office of Fair Trading are that it was simply one bank of petrol was closed for safety and security reasons," Mr Walker said.

"The owner and proprietor said the bank was out of the line of sight of the console operator and he was concerned about the threat of drive-offs."

Mr Walker said petrol was still available at other pumps at the station and there was no evidence of a widespread problem.

"This is a timely reminder for petrol retailers to be honest and truthful in their representations to consumers in terms of availability of supply of petrol," he said.

Mr Walker said breaches by operators of the Trade Practices Act could result in fines of $22,000 for individuals and $1.1 million for companies.

ninemsn 10 Jul 2008

One of the largest scams/farces of our time is the great fuel rip-off.

The so called investigation that will allegedly be initiated by the government WILL be FRUITLESS.

Fuel or rather the Oil Empire is in the hands of the minority, or rather the financiers and its price is controlled accordingly. It is naive to think that the people highly placed in politics are unaware of this. This so called 'public' exhibition is too stupify the masses into believing that there will be something done. History shows that it never has and IT NEVER WILL.

One must also remember that the Great Depression of the 20's was deliberately created by the financiers in order to wipe out the middle class, in America as it did.

Similarly, the approach of the financiers is to WIPE OUT ANY savings the middle class has. It has also been announced the the Reserve Bank is increasing its interest rates. The biggest problem is that they are telling the people that it is for THEIR BENEFIT.

Mr. Walker is a spineless individual who is LYING to the general public. Petrol companies have been caught out so many times, BUT from the authorities point of view there is "NO EVIDENCE". Just exactly on who's payroll is he ???

What they're saying to you is that you WILL be shafted $2 / litre by Christmas.