WITH LPG prices breaching $1 per litre at local fuel outlets, financial strain is expected to be widely felt across Gippsland in the lead-up to Christmas.
The 33 per cent record increase of Australian Liquid Petroleum Gas reached an all-time high on 1 December, hitting regional low income earners, the unemployed and the taxi industry this week.
Federal Member for Gippsland Darren Chester said the sharp increase had reduced motorists’ capacity to make savings and were understandably frustrated and wanted answers on the cause of the increase.
Mr Chester has taken LPG pricing concerns directly to Industry Minister Ian Macfarlane.
“What has angered motorists most is that the increase occurred virtually overnight and comes just two weeks ahead of Christmas when their budgets are always stretched,” he said.
Luke Roberts of the Salvation Army Social Program Department for the Eastern Victoria Division said the LPG price increase was just another added pressure for low income earners, with the Salvos servicing there times the amount of people this December.
“You’ll scrimp and save to make that cost and then you’ve got to take away from something else, going out, spending time with friends, which adds to social isolation and feeling of hopelessness.”
Anglicare Morwell community services manager Nancy Oosterhof said LPG prices were also going to have a tremendous effect on the unemployed, restricting transport abilities when seeking employment.
“This is going to be a barrier to seek employment and attending interviews,” Ms Oosterhof said.
“We’re predicting this will be another factor when clients come in for financial counselling services.”
The price spike is also expected to affect Gippsland taxi providers.
Traralgon Taxis manager Andrew Lane said the taxi industry was up in arms, paying up to $1 per LPG litre and no fare increases.
“We’ve had minimal fare rises and our gas prices have more than trebled” Mr Lane said.
“How does the government expect us to survive on that?”
Mr Lane said his biggest frustration was Latrobe Valley gas prices was often 10 to 15 cents higher than Melbourne prices and questioned why this was the case.
“In the Latrobe Valley it’s particularly frustrating when gas comes up the road at Longford,” he said.
Mr Chester said Australian LPG prices were based on the Saudi Aramco Contract Price (Saudi CP), which was set on a monthly basis.
“The Saudi CP has increased on the back of tight global supply conditions and seasonal demand as the northern hemisphere enters winter. This together with the weakening of the Australian dollar, has further compounded the increase,” he said.
