Australians set to be stung by rising petrol and power costs

Petrol and power costs set to rise – households warned to prepare for bill shock.

Australians set to be stung by rising petrol and power costs

A new deal between the world’s top oil-producing nations will mean the end of $1 per litre fuel, and some Australian residents will, next year, pay up to 10 per cent extra for electricity.

Within weeks, petrol prices will rise by an average of 8c per litre, after the Organisation of the Petroleum Exporting Countries (OPEC) reached a deal to cap oil production.

This means Australians have around three weeks left to take advantage of cheaper petrol before the oil price rise is felt at the bowser.

“The days of cheap $1 fuel are certainly over … essentially around Christmas is when you will see the impact from these price increases,” said CommSec’s Savanth Sebastian. “Motorists will probably be better off filling up in the next couple of weeks when they get to the low point in the cycle.”

Economists are predicting an eight to 14 per cent increase in fuel costs across the country by the end of the year, with further price rises expected next year.

And there’s even more bad news for Victorian residents, as the closure of the Hazelwood power station means that, as of 1 January 2017, the cost of electricity will rise.

The electricity price hikes are estimated to be between 6.5 and 10 per cent for residential supply.

"There's usually a range of reasons for the price rises and in this instance the main driver is the increase in wholesale costs," said Kieren Donohue from the Australian Energy Council. "And the biggest impact on that is the upcoming closure of the Hazelwood Power Station."

Gas prices are also set to rise, with combined electricity and gas costs expected to increase by up to $310 per year, depending on the retailer and location.

Electricity-only households could see bill inreases of up to $210 per year.

Victorian residents are being urged to shop around for the best electricity prices, and pensioners should check if they’re eligible for energy concessions.

Earlier this week, the Essential Services Commission showed that up to 70,000 people are enrolled in energy retailer hardship programs and 61,000 households were disconnected in 2015.

This news means that Australian households already doing it tough will be forced to tighten their belts even further.

How will the increase in power costs affect you? Are you eligible for a concession?

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    COMMENTS

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    jackyd
    2nd Dec 2016
    10:22am
    We are being ripped off...and conned by the political elite that insists we must pay for the woes of the world with renewable energy while it makes not a scap of difference.
    Anonymous
    2nd Dec 2016
    1:19pm
    What an idiotic post. Of course renewable energy makes a difference.
    Luchar
    2nd Dec 2016
    1:22pm
    You are quite correct, Barak. Renewable energy does make a difference.

    More expensive and less reliable.
    jackyd
    2nd Dec 2016
    4:38pm
    Thanks Luchar, we can see who the idiot is here!
    MICK
    2nd Dec 2016
    10:45am
    Fuel: this is the biggest con around. When oil drooped to one third fuel prices went down a few cents. Not that oil prices are on the way up the FULL increases are set to be applied. So where is the ACCC AGAIN? Nowhere to be seen.

    Electricity: Australia already has close to the highest electricity prices on the planet and we own the coal which produces it. Now the bastards intend to hike prices seen further complete with a compliant government in tow. The only word for this is a self interest casino.
    Renewables are coming and I may jump sooner rather than later once storage battery prices come down. Watch the price of energy drop like a rock then. I won't be back no matter how cheap it gets though.
    TREBOR
    2nd Dec 2016
    12:00pm
    I'm with you there, Mick. Got my beady eyes on the same thing - guy who does solar stuff here reckons batteries are coming down and I will be going self-sufficient.

    Sick of the rip-off merchants using necessities of life for milk cows.
    Anonymous
    2nd Dec 2016
    12:22pm
    A survey of fuel prices found petrol was cheapest in Cobar and Broken Hill. How can outback towns sell fuel cheaper than the cities into which it is shipped?
    Anonymous
    2nd Dec 2016
    12:37pm
    I agree about fuel MICK, if we complain about the barrel costs being low and the price staying high, we are assured that the reason is the dollar parity. If the dollar parity moves in our favour, it's the barrel price that has moved. We are being fed lies and nobody seems to be able to stop the oil companies.

    Listening to the radio the other night makes me glad I'm in NSW. The closing of Hazelwood in the Latrobe Valley will cut off 25% of Victoria's electricity supply with no plans to replace it. The report advised that as there was a constant demand and a reduction in supply that the cost of electricity in Victoria will rise. It seems we are being ruled by a vocal minority who want to close coal mines as they have done in South Australia. It would be helpful if these vocal minorities could plan ahead and tell us how we can get a constant baseload to maintain a steady supply.
    jackyd
    2nd Dec 2016
    1:21pm
    Still need base load power distributed through a post and wire network if we want any industry at all.
    If more households go off the grid, power becomes more expensive for those that can't afford the investment. ....freezing grannies and grandpa's!
    Anonymous
    2nd Dec 2016
    1:26pm
    Old Man - a Liberal government (Kennett) sold Victoria's power system. Funnily enough, the private owners have not built a replacement for the worn out Hazelwood.

    Should the government have done so? And then sold it again?

    The power stations in SA were over 30 years old, also privatised, and burnt dirty brown coal. Keeping them running forever was impractical.

    Just condemning these closures without commenting on the bigger picture is pointless.
    TREBOR
    2nd Dec 2016
    2:27pm
    Shows either an absolute lack of long term planning or a deliberate policy of reducing supply so as to raise prices... it's called 'gouging' or Robber Baronies.

    Stoopid is as stoopid does as they say down in Green Bow, Victoria... and the privateers are the stoopidest....
    Anonymous
    2nd Dec 2016
    2:31pm
    Barak, I don't give a fig as to who sold what. This is beyond partisan politics as far as I'm concerned. We can go back in history and point fingers, smear personalities and play the blame game but in the end, Victoria has 25% less electricity being generated and no replacement in sight.
    Anonymous
    2nd Dec 2016
    3:26pm
    Usual left wing bullshit from Barak but if it be remembered Kennett did have to sell nearly everything as the state was broke after Labour in the form of Joan Kirner and her merry men of lame brains had bankrupted the state.
    We now have another left winger loser named Andrews who has helped ruin this state (Victoria the most un liveable state in the World)
    particolor
    2nd Dec 2016
    3:34pm
    KENNET HAD THOUSANDS OF DOLLARS WORTH OF HIRED ART AND POT PLANTS IN HIS LUXURIOUS OFFICE :-( :-( :-(
    PS... :-( :-(
    particolor
    2nd Dec 2016
    3:35pm
    So never mind your Mr FIXIT Speech !! :-)
    Anonymous
    2nd Dec 2016
    4:16pm
    If you knew anything about Kennett particolor he leased all the pot plants and art as the state couldn"t afford to pay outright.
    You are obviously not from Victoria or know to much about the place.
    particolor
    2nd Dec 2016
    5:30pm
    I'm only going on the BIG NOISE they made in the Paper about it at the Time :-) :-) So there MIGHT have been a Smidgen of Truth in it :-) :-)
    wally
    2nd Dec 2016
    5:38pm
    I hope that Barak's comments on the state of Victorian and South Australian coal fired power plants are correct. What has not been stated is, that in the rush to embrace renewable energy sources, the politicians in power have short sightedly failed to ensure that a "Plan B" back up power generating source was in place. Thus South Australia is reaping the "benefits" of wind and solar power and the resultant power blackouts. when Hazelwood is shut down, will Victorian electricity consumers suffer the same as their neighbours in South Australia? Is this proof that the road to Hell is paved with good intentions?
    tendj
    2nd Dec 2016
    8:06pm
    dont know where you saw that survey but I lived in Cobar for 6 years and it was always 20 to 30 cents dearer than Sydney. At the moment wellington is 20 cents cheaper than Dubbo 45 Ks apart cant tell me it costs 20 cents to cart it 45 Ks
    Eddy
    3rd Dec 2016
    1:26am
    Well Tendj, I will give you a better one. A couple of weeks age the price at Woolworths Broadmeadows was 134.9 (a 22 cent+ hike overnight) while the Woolworths/Caltex in Gladstone Park (3 km away) was 111.9. At the same time the Coles/Shell in Jacana was 134.9 while the Coles/Shell in Gladstone Park was 111.9.
    Also our little independent often has fuel cheaper that the local Woolworths or Coles. The reason is he sets his price by the cost of the last tanker delivery + his margin. He does good business, but that may be because he has a youngster who serves you and will check your oil and tyres and clean your windscreen if you ask him to. My wife won't go to any other place.
    Rae
    3rd Dec 2016
    10:16am
    Yes tendj I fill up in Wellington on my way east or west and it is always much cheaper than anywhere on the Central Coast just north of Sydney.

    Peak Hill is usually much cheaper than Dubbo too which is in explicable.
    HarrysOpinion
    2nd Dec 2016
    10:55am
    70,000 people are enrolled in energy retailer hardship programs and 61,000 households were disconnected in 2015
    - A national scandal-
    Ted Wards
    2nd Dec 2016
    11:00am
    Here we go Australians the great walking wallets. Lets put up the prices so the fat cats can get richer. Isn't time we had an inquiry into why the costs are just escalating and incidentally profits are sky rocketing!
    TREBOR
    2nd Dec 2016
    12:03pm
    Every time these same silly things come up - I recall how 'overpaid' we are in this country, and the ceaseless whining like a bad truck diff at full speed down the hill about the cost of labour and unions and such.

    Then we cop another rise in everything under the sun - since fuel prices are reflected in food etc prices and so on - it's a knock-on effect.

    Then the workers/pensioners etc are forced to get more money, and out come the broken diff again from the current government especially, and all the while they are piling bills like Scrooge McDuck into a money vault from the rising taxes and excises that go with the rising prices.

    One big con....
    Play Fairly
    2nd Dec 2016
    12:16pm
    Yes, people on fixed incomes will gradually reach the point where they cannot afford to pay their electricity bills. What will happen then if temperatures become more extreme? I can see many many elderly people, particularly those living in tropical climates, being unable to survive heat waves. No use saying they can continue to drive to their local shopping centre for some pleasant air con relief because, very soon rising petrol prices, plus rego, plus vehicle maintenance costs will put an end to that! Not everyone lives in cities that have public transport either. It is a bit hard to know what is the next "necessity" you can do without.
    Rae
    2nd Dec 2016
    1:37pm
    Yes Play Fairly. I've just visited Coles and and amazed at the number of retirees sitting around in cafes and restaurants. Obviously they have plenty of money or no idea of price increase coming or always spend everything each pay. I know I'm cutting back getting ready for the price rises.

    The local club was full as I drove past too. Obviously trying to win on the pokies seems a more interesting option to going home and reading a library book and saving that $50 for the future.

    With me it will be private health insurance and contents insurance and comprehensive car insurance that will go first after all unnecessary discretionary spending.

    If all 25% of us stopped spending now it might never get to much as the screaming from business would be well and truly loud by the time the pollies get back from hols.
    Play Fairly
    2nd Dec 2016
    2:07pm
    Rae, even if people further cut back on their utility expenses and any small indulgences, there will come the time when you can't economise any further because of 2 things, one being that prices will forever continue to rise, and fixed incomes are just that.
    particolor
    2nd Dec 2016
    3:39pm
    Play Fairy And if You cut back on usage they will Counteract on you with Raising the Availability Extortion !! You cant WIN !! :-( :-(
    Mandy
    2nd Dec 2016
    11:07am
    The fuel companies are not content with the extra fuel sales they receive during the holidays but greedily demand extra. The media actually encourages them to increase the prices by "warning" of an imminent increase and talking of "cycles" when in fact the price shoots upwards by 25 cents per litre or more in minutes, stays there for about 2 weeks and then crawls down by about 2 cents a day for the next 2 weeks. The media should be taking the oil companies to task and demanding why the increases are happening when there has been little or no change in the oil price.
    Tom Tank
    2nd Dec 2016
    11:46am
    Corporations are allowed to sell Australian gas overseas for better, and quicker, returns than they get locally. This now means that we are paying higher costs for our gas because we now have a local shortage of supply.
    This is not allowed to happen overseas so why is allowed to happen here?
    Do we have a Government that is so far into the pockets of the mining and fuel industries that they dare not look after us, the Australian community, in case the BIG boys hit back at them?
    TREBOR
    2nd Dec 2016
    12:05pm
    It happens because our government of two parties is in league with the 'global economists', and quite obviously in their pay as well.

    No other explanation makes sense.

    That's why we need a complete change of government, to a new Party that actually works for Australia and its people, and not for business interests.
    TREBOR
    2nd Dec 2016
    12:08pm
    I think that's what Fidel Castro said - and look what it got him....
    particolor
    2nd Dec 2016
    5:37pm
    :-) :-) A 1955 Chevy !! :-) :-) :-)
    TREBOR
    2nd Dec 2016
    7:53pm
    ROFL emoticon implied......
    Rae
    3rd Dec 2016
    10:20am
    I wish I had a 1955 chevy. My hyundai is great except the immobaliser sometimes decides I'm trying to steal it and shuts me down. I have to trick it into starting the engine. Sigh. Sometimes I hate new technology.
    TREBOR
    2nd Dec 2016
    11:58am
    $1.35 here now - the price of fuel is not spread across the State and we 'bushies' cop it hard.

    Ah, yes - the old cartel restricting supply to raise price per unit trick, eh? Time for this country to divorce itself from the ridiculous notion that it should have a petrol parity price with Singapore - a nation that produces not one drop whereas Oz produces in the high 90% zone for itself. The idea - all those years ago (that you, George Harrison?) - was a classical 'greenie' one - if the OzGuvCo belted the petrol users they'd use less and this would benefit the environment - as if. The reality was a nice little flow into the coffers of government so they could find new ways to waste it.

    Nothing new under the pump - except the pressure on the poor old consumer - emphasis on the old....
    floss
    2nd Dec 2016
    12:06pm
    As a veteran power worker I knew that when the power industry was privatised cost had to go up.We now have a loss of revenue back to the State Gov.plus a loss of tax to the Feds.The sale profit has disappeared into infrastructure that we need to increase our population for god knows what reason.Foreign owners now have a monopoly product that must go up in cost how dumb is this Government.
    jackyd
    2nd Dec 2016
    1:23pm
    Not just this government, all governments!
    crazypete
    2nd Dec 2016
    7:46pm
    Well our great leaders had to get money from somewhere to pay for their pay rises and build hospital that are no good
    TREBOR
    2nd Dec 2016
    7:54pm
    .. and fill them with overpaid 'ceos' and management staff who couldn't run a chook raffle at the county fair....
    Poppa Bear
    2nd Dec 2016
    1:36pm
    Talk about a con with fuel prices, back in 2003, petrol prices were 82.9 cents per litre, and the price of crude was $64 to 65 per barrel. At that stag3 we were told that $1 per barrel increase in price equated to 1 cent at the bowser. The prices quoted were on the US price per barrel, which is what they always quote when giving prices on the news. With the quoted price being approx. $40, guess who is getting ripped off, and have been for los of years.
    TREBOR
    2nd Dec 2016
    2:57pm
    Wait for the conga line to tell you that it is the Unions and the high cost of labour here that causes the high prices - notwithstanding that pay rises always follow rises in costs of living....

    While ever gouging is allowed to continue here in harness with the extremely costly to the consumer 'privatisation', there is no resolution in sight to the never-ending spiral of costs of living = higher incomes required = fewer people employed on into infinity...

    Stoopid is as stoopid does.... this country is headed for ruin under the guidance of this government of two parties.... and there is no valid party on the horizon with which to replace them.... so let's get cracking....

    I'll do the motivating and you do the work.... (ha ha)...
    Rae
    3rd Dec 2016
    11:52am
    Strange how many people have no idea that everything has been sold off and no longer makes dividends for the taxpayers who once owned the assets.

    There should have been protections in the Constitution but I suppose the founding father's never envisaged the type of individualism and crony capitalism that would allow treasonous government mismanagement and theft of Commonwealth property.

    2nd Dec 2016
    2:38pm
    And as a matter of interest, Queensland is now going the way of NSW as regards ethanol fuels. They are going to force fuel companies to sell a percentage of E10. I presume the oil companies will do the same as NSW by withdrawing unleaded fuel from sale and leaving a choice of E10 or the high priced Premium. This action will advantage the ethanol producers by giving them a bigger market share and the oil companies by giving them a higher profit on Premium fuels but will disadvantage the average motorist.

    Just in case people aren't aware, whilst E10 is considered safe for most cars, it shopuld never be used in mowers, whipper snippers or other home garden machinery. The seals are not compatible with E10 and may damage the motors.
    jackyd
    2nd Dec 2016
    4:49pm
    and my good old 400DRZ didn't like it much either!
    crazypete
    2nd Dec 2016
    7:44pm
    Even my car which is 2002 model hates the stuff as well
    TREBOR
    2nd Dec 2016
    7:55pm
    Jayzuz - I once put that in my 1962 Mk II Jaguar - it nearly committed suicide at the sacrilege.....
    LiveItUp
    2nd Dec 2016
    9:59pm
    Never used E10 as my cars have all run on diesel. Use premium in the ride on mower.
    crazypete
    2nd Dec 2016
    7:42pm
    about time our great government woke up as they like closing things an selling it as well to line their own pockets with tax payers money and for get the people like building new hospitals that does not get built properly, and now they are talking about wasting more money on another hospital so what else are they going to do because their so call renewable energy is a laughing joke as we will be finding out during the summer month. so get out will you or is that to hard for you all.
    TREBOR
    2nd Dec 2016
    7:56pm
    .. that's if they don't 'privatise' the hospitals first, crazypete... so you get to pay before they take you off the stretcher.....
    LiveItUp
    2nd Dec 2016
    9:56pm
    Good I can once again full my car up with a smile on my face as the prices rise. My investment in oil companies will once again pay me heaps more than any price rises.

    My investment in solar will finally get some legs as the price of power rises.

    Blind Freddie could see all this coming.
    mareela
    2nd Dec 2016
    10:37pm
    Hi Roby, so much for partisan politics. You're obviously a rusted on rightard. If you don't like living in Victoria, may I suggest a move to NSW. Baird will be more to your liking although he is selling all assets not tied down, including electricity. All revenue raising assets SOLD to the highest bidder. That's the conservative way and preferably sell them to those that donate millions of dollars to the right wing cause. Just a suggestion.
    Rae
    3rd Dec 2016
    11:46am
    Yes I was wondering why he hadn't sold the Opera House yet but it actually belongs to The City of Sydney ratepayers not the NSW taxpayers.

    Baird and the LNP seem to believe it all belongs to them.

    They could do with better dealmakers though as the prices they are getting are pretty damn miserable. No selling to the highest bidder about it.
    older&wiser
    3rd Dec 2016
    6:57am
    So what's new? Happens EVERY year
    sayonara
    3rd Dec 2016
    7:29am
    Can anyone tell me which is the cheapest retailer in Victoria to go with? And who gives you a price and then put it up as soon as you sign up with them? Thank You.
    Rae
    3rd Dec 2016
    11:43am
    I think the trick is to not show any loyalty. Like insurance and banks get quotes and change providers frequently. The best deals seem to be at the beginning. Never sign a contract.
    particolor
    3rd Dec 2016
    5:05pm
    You only have to say "YES" on the Phone now to sign a Contract :-( :-(
    I answer everything with "NO !!!" :-) :-)
    musicveg
    4th Dec 2016
    3:16pm
    Try Powershop, I love it at least you can prepay your electricity so you don't end up with a hefty bill.

    Use this link to save $75! on your first bill.
    https://secure.powershop.com.au/r/lindad-svoA2d9
    Just copy and past into your browser.
    KB
    3rd Dec 2016
    8:42am
    South Australia has the high energy costs on the world/ Labour is too spineless to find a solution or demand that electricity prices stop rising
    Hawkeye
    3rd Dec 2016
    12:35pm
    Yes KB, and also the least reliable.

    But never fear, our great Energy Minister/Treasurer Tom (who's previous job was a taxi driver) explained all that yesterday.

    SA has more than enough base-load generators for our needs. And they are among the most clean and efficient gas-fired generators on the planet. So we really don't need to rely on buying all that dirty yucky brown coal power from Victoria after all.

    As Taxi-Tom said, there is only a minor problem that we don't have a gas pipeline big enough to feed our you-beaut gas-fired generators, so they can never run at full throttle.

    That means clean-green SA actually relies on dirty power from Victoria for it's base-load. And as Victoria is now shutting down the generators which supply it, any black-outs in SA are actually Victoria's fault.

    Aint State guvments a wundufal thing
    KB
    3rd Dec 2016
    8:42am
    South Australia has the high energy costs on the world/ Labour is too spineless to find a solution or demand that electricity prices stop rising
    musicveg
    4th Dec 2016
    3:20pm
    The increase means less money to spend elsewhere which means other types of business suffer as people cannot spend as much keeping the wheels turning. It is 30 degrees outside, inside 22, but I will not put on the air con so I can save it for when it is much hotter, even then I am better off going downstairs to keep cool.
    If you are in Victoria try Powershop, you will support renewable energy and be able to buy your power ahead of time so you don't end up with a huge bill. Use this link to save $75:
    https://secure.powershop.com.au/r/lindad-svoA2d9