Fuelling up the car at BP south Coffs Harbour.Fuel prices around Coffs harbour.10 January 2017  Photo  Leigh Jensen/Coffs Coast Advocate
Fuelling up the car at BP south Coffs Harbour.Fuel prices around Coffs harbour.10 January 2017 Photo Leigh Jensen/Coffs Coast Advocate Leigh Jensen

Annual cost of fuel set to rise

DESPITE fuel prices dropping since the Christmas period, motorists will be forced to pay hundreds of dollars more a year for fuel.

The Australian Automobile Association has warned drivers face huge increases at the petrol bowser as a result of a government proposal to ban the sale of regular 91 octane unleaded in the Australian market by 2020.

Modelling by News Corp Australia based on yesterday's fuel prices shows if drivers were forced to buy premium 95 octane unleaded instead of regular 91, annual fuel prices could rise by as much as $645 a year.

This is based on filling up a standard Holden Commodore driving an average of 15,000 kilometres a year in Sydney.

The peak motoring group, representing clubs like the NRMA, RACQ, RAA and RACV and their eight million members, yesterday urged the government to rule out the proposal in a pre-budget submission presented to the Coalition.

The measure is one of five key proposals the government is actively considering and was outlined in a discussion paper released in December.


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