Rising petrol prices to hit tourism hard

Australia’s petrol woes could have a major impact on the holiday season, with one expert concerned high costs could see families spend less in local businesses over the summer vacation.

NRMA’s Peter Khourey said while there was hope we’d seen the worst of the high costs, it would still burn a hole in the family budget.

“Certainly, petrol has been a major contributing factor to the increase in living costs in Australia throughout 2021,” he told the NCA Newswire.

“There is no doubt that it’s a contributing factor globally.

“We’re heading into holiday season. It’s hopefully going to be the first uninterrupted holiday we’ve had since Covid hit so we really want families hitting the road, travelling to regional locations to spend their money.

“But every cent they spend extra at the bowser is one cent that they’re not going to have to spend in local communities.”

The Prime Minister has sought to use this hip pocket burden as a weapon against Labor as he tested his pre-election slogans on the hustings this week.

In Sydney on Monday, Mr Morrison borrowed imagery from John Howard to sell his argument that Labor could not be trusted on the cost of living.

“Australia’s economic recovery has to be secured by people who have a track record of economic management,” Mr Morrison told reporters on Monday.

“Otherwise, you’re going to see petrol prices go up. You’re going to see electricity prices go up. You’re going to see interest rates go up more than they would need to.

“That’s why economic management is so important now, as we come out of Covid. Having secured our help through the pandemic, we now must secure the economic recovery.”

His campaign sell lends itself from one used by former prime minister John Howard, who during the 2004 election campaign claimed Labor could not be trusted with the economy.

But Labor rubbished the claims and were quick to point out the rising costs have occurred under his watch.

“Instead of doing something meaningful here we‘ve got the Prime Minister mounting yet another ridiculous and pathetic scare campaign, this time on petrol prices and interest rates,” opposition treasury spokesman Jim Chalmers said on Tuesday.

“Petrol prices have skyrocketed on his watch. Is he now seriously claiming that he has a policy to keep petrol prices down? Well, then let’s hear it.

“Is he’s seriously claiming that interest rates will not rise if he is re-elected? Let’s hear about how he intends to do that and how he intends to promise that.”