Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

My question is to the Prime Minister. Is the Prime Minister aware that the last time petrol prices in Australia were at $1.15 per litre crude oil was around $US60 per barrel, compared to the budget forecast of more than $US70 per barrel and current prices of around $US74 a barrel? Why then did the Prime Minister tell the Australian people on Sunday that petrol prices could soon fall to $1.15 a litre, contradicting the Treasurer’s own budget estimates? Prime Minister, can you please explain to the House the basis for your comment about petrol prices falling to $1.15 a litre?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I did not make the prediction attributed to me. I said that there was in the immediate term no likelihood of it going down but I entertained the hope—and I think I used that expression rather than making an educated projection—that it was possible that it might return to a lower level, and I think I did indicate that. I gave no time frame to it. I do not in any way withdraw what I said. I am grateful that what the member for Hunter has done by his question is to confirm the fact that the price of petrol is overwhelmingly governed by the world price of crude oil. I think that is a very valuable acknowledgement in the current debate and I thank him for it.