Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

The House would be aware that at present across the global economy we are experiencing considerable instability in global financial markets. There is great uncertainty across the global economy, and it is uncertain still in terms of how circumstances will evolve. We have very tight credit circumstances in financial markets, weaker stock prices and global commodity markets. But, on top of that, we have had recent significant moves on the overall price of petrol. Overnight crude oil prices reached a historic record high of $US110 per barrel on global markets. The soaring crude oil price reflects a strong global demand against what, of course, continues to be limitations in global supply.

These factors compound the cost of living pressures for working families. When working families are dealing with interest rates going higher and higher, 12 on the trot—when they are added to the cost of child care, added to the cost of groceries and added to other cost pressures affecting the family budget—it is important that government does everything within its power to assist working families under financial pressure.

When you look specifically at petrol prices, the numbers are significant in themselves. Petrol prices have risen 14.3 per cent in the past year. That is four times the rate of inflation. In the five years to December 2007, the official measure of automotive fuel prices recorded an increase of 50 per cent. That is why the government is absolutely committed to taking every reasonable step to boost competition within the petroleum industry in order to ensure that motorists do not have to pay a single dollar more than is necessary at the bowser.

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