KEY POINTS:
An Australian report released today says the price of petrol in that country could hit A$8 ($10) a litre within the next 10 years.
The prediction from the Commonwealth Scientific and Industrial Research Organisation comes as the price of oil jumped back up today to US$142 a barrel and petrol prices on this side of the Tasman sit at record levels.
Researchers for the Future Fuels Forum, which works with major private and public bodies in Australia, looked at the likely effect of rising oil prices, potentially dwindling oil stocks and emissions trading schemes.
They found there was likely to be a shift to hybrid cars and other forms of fuel as petrol soared to the A$8 a litre mark.
The current price of 91 octane petrol in inner Sydney is around A$1.67 ($2.12) a litre, while prices in New Zealand's main centres are around $2.19.
Dr John Wright at CSIRO said: "The Forum believes Australia's fuel mix will shift in the near term to include the expanded use of diesel, gaseous fuels such as LPG and hybrid electric vehicles, with even greater diversity beyond 2020 that might include hydrogen, synthetic fuels from coal or gas and advanced biofuels that will not impact food production.
"Securing access to affordable and sustainable fuel underpins Australia's economy and way of life and as a nation with relatively high vehicle use, we are vulnerable to the economic, environmental and social impacts of rising oil prices and rising temperatures,"
The report, called 'Fuel for thought - The future of transport fuels: challenges and opportunities', looked at the need to dramatically reduce greenhouse gas emissions from vehicles and how to deal with "increasingly costly and scarce oil supplies".
"The future price of oil is uncertain," Dr Wright said. "The Forum's scenario modelling shows that if oil production peaks, prices could climb as high as A$8 per litre by 2018 in the most extreme case."
He said people on low incomes were most likely to be affected and that such prices could force early action on alternative fuels.
- NZ HERALD STAFF
