The Wire

The recent rise in fuel prices is expected to effect driving patterns of motorists and petrol dependent businesses, according to some in the transportation industry. Up until 1998 petrol prices stood just under 70 cents a litre, but a steady rise of more than 30%, is already showing its impact on the Australian economy. In average, petrol costs in Sydney have reached $1.23 a litre, and more than a $1.30, in rural NSW. While in the city, people have got the choice of using public transport, people in the bush don’t have the privilege. Long driving distances in the country and lack of basic public transport services, means that every day people are more reliant on their private vehicles. Household spending on petrol have risen as a result, but some economists say, that the change is not going to effect consumer spending. Hagar Cohen reports.