Trucking industry to be hit with another increase in diesel prices
By Ruza Zivkusic | March 22, 2011
The trucking industry will be hit with another increase in diesel prices as record-high oil prices push costs up.
Diesel prices are set to rise by 2 cents a litre over the next two weeks due to political unrest in Libya, CommSec economist Savanth Sebastian says.
“Any potential disruption to supply can have a detrimental impact on prices and that’s what we’re seeing at the moment,” Sebastian says.
“The unrest in the Middle East is contained to a certain degree in Libya but there is simmering [instability] throughout the region so I think it’s likely that prices will track sideways over the next fortnight and it will depend on what occurs in the Middle East at that point.”
Petrol prices have gone up by 8 cents a litre over the last five weeks, with the impacts felt by households and businesses, he says.
“It adds a further pressure to the economy that has lost a bit of momentum given the natural disasters and the rate hike that took place last year,” Sebastian says.
He says the high prices have caused a decline in consumer spending, which will affect the medium growth prospects of businesses.