MOTORISTS could soon be paying $2 a litre for fuel, a peak fuel industry body has warned.
In the past week the cost of premium hit $1.64 in some parts of Queensland, with NSW prices hovering at the $1.60 mark.
Unrest in overseas oil markets combined with government inaction on fuel discounting by supermarket chains has created an environment where $2 a litre was only a matter of time, Service Station Association chief executive Ron Bowden said yesterday.
“In the last couple of days, our market (for crude) – which is the Singapore market – has accelerated quite markedly,” he said.
“It ($2 a litre for unleaded) is on the horizon.”
As regional prices for unleaded hovered between $1.40 and $1.50 a litre this week, the cost of filling the average family car, with its 60-litre tank, rose to about $96.
“Woolworths and Coles are slowly dismantling (the competition) and the government is doing nothing to stop them,” Mr Bowden said.
He said the two supermarket chains operated 15-16% of the service stations but sold 50% of petrol volume in Australia.
A Coles spokesman rejected allegations the “shopper docket” discount system contributed to price rises on the Fraser Coast.
“The reality is we don’t set the fuel price, we respond to changes in the market,” he said.
“We will meet whatever the price is in whatever market we are operating in.”
Update your news preferences and get the latest news delivered to your inbox.