Qld: $1 a litre fuel to hit bush

AAP General News (Australia)
02-17-2000
Qld: $1 a litre fuel to hit bush

BRISBANE, Feb 17 AAP - A leading motoring organisation today warned a steep rise in
fuel prices could backfire on the world oil industry and motor vehicle manufacturers.

Motor Trades Association Queensland Executive Director Tony Selmes said petrol prices
could hit $1 a litre by Christmas, with regional areas worst affected.

Mr Selmes said many consumers were already paying 75 to 85 cents a litre - and if the
upward trend continued they could be paying even more than $1 a litre for petrol.

World markets have put oil at $US30 a barrel, when this time last year it was only
$11 dollars a barrel, Mr Selmes said.

Petrol prices have steadily risen since major oil exporting countries cut back their
production in March.

A meeting of the Organisation of Petroleum Exporting Countries (OPEC) next month is
expected to decide on whether production should be wound back any further.

Mr Selmes compared OPEC's production limits to the oil crisis in the 1970s, when oil
producing countries artificially increased prices by restricting supply.

Such a move would backfire on OPEC because consumers would turn toward alternatives, he said.

"They will seriously revalue the cost of their motor vehicles and re-think whether
to fill up more than once a week," he said.

Mr Selmes said regional areas would still bear the brunt of the fuel price hike, and
it would be a long time before rural areas saw lower prices.

AAP dn/sc/pjs

KEYWORD: PETROL MTA

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