Gasoline prices have been galloping to fresh highs in recent weeks as global oil prices have plummeted as a result of the war in Ukraine.
The Australian Institute of Petroleum said the national weekly average for petrol prices last week jumped by 14.9 cents to a record 212.5 cents per liter, after ranging from 210.4 cents to 214 cents.
As if households are not putting enough pressure on petrol-bowser, economists expect prices to go even higher with crude oil prices rising and returning above $ US100 per barrel.
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The federal government has promised to provide some support to households in next week’s budget in the face of escalating cost of living pressure.
It has been speculated that Treasurer Josh Frydenberg may temporarily reduce the fuel excise duty by 44 cents per liter.
But Deloitte Access Economics economist Chris Richardson has warned that such support could further boost inflation and advance the timing of an expected interest rate hike by the Reserve Bank of Australia this year.
He said it is also difficult to remove such aid once in place.
“These bandids are moving fast but coming off slowly,” he says.
Meanwhile, a new survey showed that Australia’s small business sector achieved the weakest growth rate in the Asia Pacific region in 2021.
The CPA Australia Asia Pacific Survey found that more Australian small businesses were cruised in 2021 than grew.
Only 32.2 per cent of Australian respondents said their business had grown last year, compared to a survey average of 47.3 per cent, while 35.5 per cent reported declining.
Not only that, Australian small businesses recorded the lowest rate of income growth at 33.7 per cent – compared to a survey averaging 50.2 per cent. Only 7.1 percent increase the number of employees, against a survey average of 28.7 percent.
The survey took small businesses from Indonesia, the Philippines and India that led the region through growth.
CPA Australia senior manager business policy Gavan Ord said the survey shows when it comes to Australian small businesses, technology is their weak link, and should be a wake-up call ahead of the federal election in May.
“Small businesses are incredibly important to Australia’s economy,” he said.
“As a party forming the government, we want them to ensure that Australia’s Digital Economy Strategy reflects the importance of small business and supports it to succeed in the digital economy.”
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