Oil Prices Rockets - We Will All Pay

Sun Herald

Sunday June 8, 2008

By Josh Gordon

MOTORISTS will face pump prices as high as $1.70 a litre within days, and more than $1.80 as early as next month, after fresh tensions in the Middle East propelled world oil prices to record highs.

Oil markets were whipped into a frenzy after Israel's transport minister warned that an attack on Iranian nuclear sites looks "unavoidable", raising concerns about the stability of the region.

The global oil price leapt by $US11 to a record $US139 a barrel in the biggest single-day jump in history. Investment bank Morgan Stanley predicts prices will hit $US150 a barrel next month, with demand from Asia already running at record levels.

Australian Automobile Association director of research and policy John Metcalfe said generally a $US10 a barrel increase pushes Australian pump prices up by about 10 cents a litre, although, with the US dollar falling sharply, it could be closer to 14 cents.

The news came as the Government indicated that a new emissions trading scheme will include the transport sector.

Full story: Pages 4, 5

© 2008 Sun Herald

Back to News Index | Back to Home