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Petrol prices 'break record'

Date Published : Thursday, July 10, 2008

Consumers considering taking out a car loan to purchase a new vehicle may be interested to know that the price of petrol has hit a new record high, with unleaded fuel reportedly selling for $1.75 a litre in some parts of the country.

The new price, recorded on July 9th at service stations in Sydney, Melbourne and Adelaide, is 17 cents higher than the daily average listed for Sydney by the National Roads and Motorists' (NRMA), news.com.au states.

And, according to the Australian Institute of Petroleum, it breaks the previous record high of $1.61.8 a litre, which was recorded two weeks ago.

However, some motoring associations told the publication that the spike in prices is to be expected as part of the weekly price cycle and they expect petrol to come down again by the weekend.

David Cumming of Victoria's motoring body the RACV said there was "nothing unusual" about the high prices.

But not everyone agrees that prices will start to decline again before the week is out.

NRMA president Alan Evans told the publication that far from being part of the usual cycle, the new record is pushing petrol prices into "very dangerous territory" that in turn could help to push Australia into a recession.

"The sort of jumps we're seeing - you just can't shrug your shoulders and say this is part of the weekly cycle - it really is going to badly effect the economy,'' he said.

Nevertheless, the site says, some bargains were to be found on the petrol station forecourts, with some stations offering fuel for as low as $1.46.9 a litre, indicating that car buyers could benefit if they shop around for the best petrol prices as well as the best deals on car loans.

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