Rising petrol prices are prompting some Australian businesses to consider getting electric vehicles.
Petrol prices rose sharply this month, close to 10-year highs, with regular unleaded petrol up to around $1.70 a litre.
Firms like construction company Zipclad are reconsidering the way they do business, including switching to EVs.
“High prices are definitely starting to bite into our budgets, with companies like myself, we’re always on the road so we’re driving all over [the city], petrol is a big overhead,”Zipclad’s Kristian Milosevski told Fairfax Media.
“Annualised national prices have increased 22% over the year to September 23,” Commsec senior economist Ryan Felsman says.
“With prices at this level, it is effectively a tax on consumers. If the average Australian fills up with 40 litres a week this is costing them $254 a month.
“We think the new normal for petrol prices will be around $1.50 a litre.”
Milosevski says as fuel prices rise it’s becoming more convenient to start looking at electric cars like a Tesla as it is now more value for money.
The rise in prices are being boosted by high retailer margins, which are now 50% above the 16-year average.
Transport costs accounted for around 15% of the average weekly household’s budget, although this figure is likely to increase, the Australian Bureau of Statistics said in 2015-16.
Energy economist Anas Alhajii told Fairfax Media the world is headed for a potential oil shortage with prices to rise above US$100 a barrel.
“Oil demand has been underestimated and it will be way higher than forecast by the International Energy Agency,” he says.
“We can expect to see demand rising and oil hit much more than US$100 per barrel again. Australia has a serious problem as it is rich in every energy source except for oil, so it has to import it.
“We’re heading for a major energy crunch.”
