Petrol for $2 a litre 'the new norm', ex-BP boss says
Petrol prices of $2 a litre are "the new norm" as oil countries seek to squeeze the world for maximum profit ahead of a global shift to electric vehicles, the former president of BP Australasia says.
OPEC recently announced a cut in oil production that is expected to have knock-on effects at bowsers around the world.
Combined with the end of the fuel excise cut in Australia, local drivers are having to dig much deeper when filling up the tank.
LIVE BLOG: Man sought over $500,000 theft of motorbikes
Petrol prices sitting around $2/L are the new norm, a former fuel executive has warned. Drive
And now the prospect of $2.50/L prices are also looming.
Greg Bourne, the former BP head, said both the war in Ukraine and OPEC's production cut were seeing prices rise around the globe.
While OPEC's decision was seen politically as a way to support Russia in its invasion, Bourne said that wasn't the whole picture.
"That is primarily for them to bring in more revenue," he said.
READ MORE: SES receives 1000 calls for help as rivers rise in NSW
"They are thinking long-term, as we in Australia will be thinking of energy transition and decarbonising.
"It affects the exporting countries, they see they have a decade to bring in more revenue to transition their own country. It's not tit-for-tat or anything like that."
Bourne said it was a "long-running strategy".
But he doubted prices would rise to more than $2.50/L.
READ MORE: Putin blames Ukrainian 'terrorist act' for attack on Crimea bridge
OPEC recently declared a cut in oil production. AP
"They also know if they hit countries too hard, it back fires in terms of recession, then demand goes down," he said.
"For us here, $2/L, a bit more, maybe a little bit less sometimes. That's the new norm."
He said the transition to electric cars in the coming decade would be particularly significant.
As more manufacturers switched to large-scale electric production, he said, and Australia pushed ahead with decarbonising, the country would become much more resilient to "geopolitical shocks".
"My own view is decarbonising the economy is really important, incredibly important," Bourne said.
"Higher prices mean we buy more fuel efficient cars and start the transition to the EV world."
Share a tip-off, video or photo with us
