Gasoline has surged to record highs across NSW and is on course to be the biggest single driver of new demand for the energy industry by 2020, with demand for electricity and the electricity grid expected to grow faster than ever.
New South Wales Premier Gladys Berejiklian has said prices will rise on Thursday to $1.26 a litre, up $1 from the previous week’s average of $1 and up more than the national average of around $1 a litres.
It is a significant jump over the previous weekly average of about $1, and up $3 from the national $1 average.
She said the rise in petrol prices was a result of higher crude oil prices and the “unprecedented” economic impact of the downturn.
“The oil price surge is a result both of the impact of global economic uncertainty and the impact that a number of things have had on our economy,” she said.
Ms Berejicklian said the oil price increase was partly due to the global economic slowdown, but also the increased demand from gas stations and fuel retailers, and the fact that the government has had to cut the number of people it provides subsidised petrol for.
“It’s a bit of a shock for us because we had to come up with a solution and we can’t do it all on our own,” she told ABC Radio NSW.
Ms Belinda said the spike in petrol had been caused by the increase in demand for diesel fuel, which was down more than 20 per cent since last month.
“We’ve seen the fuel prices jump up a bit because of that,” she explained.
“But it’s still cheaper than diesel and we’re still subsidising petrol.”
Ms Belindas statement follows reports that the state’s economy was in recession last week, with unemployment up to 14.5 per cent.
In Sydney, Ms Berejician said there were still areas of the economy where demand had been rising and the gas stations would continue to operate.
“You have seen the gas prices increase, which is really encouraging,” she noted.
“What we need to do is to put gas stations in more places so that the demand for petrol will continue to increase.”
She said it was important for the Government to take stock of its current financial position, and what it planned to do next.
“I’m very concerned about the state of the state economy and I’m worried about the financial position of the Government,” she conceded.
Ms Bryant said there was still plenty of time for the State Government to cut spending and to address its “significant debt” before the peak of demand for fuel was hit.
“That is going to be one of the things that the State has to look at going forward and to be able to balance the books,” she added.
“And I think we’ll have that balance in place by 2020.”
Topics:energy-and-utilities,energy-environment,state-parliament,gas-andhydra,government-and‑politics,australiaContact Chris Nelis