Prime Minister on wrong track with low fuel price predictions

31/8/06
The Prime Minister is selling Australia short by pinning his hopes on a fall in petrol prices.
Planning and Infrastructure Minister Alannah MacTiernan said that major Federal investment in public transport was vital if Australia was to avoid major disruption as global petroleum production reached its peak.
"John Howard's prediction of fuel at $1.15 by Christmas might bring some temporary cheer, but upon closer inspection the gift is an empty one," Ms MacTiernan said.
"A better present would be for Canberra to acknowledge that the cost of oil will continue to rise and investment in solutions that will cut our dependence on petroleum.
"Many of the world's major oil fields are in decline and that there have been no significant new discoveries for decades.
"Existing oil fields appear unable to increase production to cope with external events, such as closure of BP's Prudhoe Bay pipeline, or extreme weather events, such as cyclone Katrina.
"Even if a major new discovery was made today, it would take up to six years for it to come on-stream.
"There is an extremely high probability that prices will keep going up at least for the next five years.
"Even conservative estimates have prices rising to $US80 in 2008 and $US101 in 2010 - that translates into $1:50 per litre and $1.80 per litre respectively.
"The likelihood is that fuel prices will be much greater than this and our community's mobility will be drastically reduced."
The Minister said the Federal Government must come to terms with the need to contribute to funding public transport infrastructure and to give more support to the development of alternatives such as hydrogen technology.
The Western Australian Government is sponsoring an Alternative Transport Energies Conference at Burswood Convention Centre, September 10 to 13.
Minister's office - 9213 6400