Costello warns of higher petrol prices. 30/04/2006. ABC News Online

Federal Treasurer Peter Costello has warned motorists there is a chance that petrol prices could climb much higher if the situation in Iran worsens.

Iran, which is a major oil exporter, has angered much of the international community by ignoring a deadline to cease work on its nuclear program.

The price of petrol in Australia is already around $1.40 a litre in many areas.

Mr Costello has told Channel 10 that the Government cannot have a countervailing action for major international trends.

"Petrol price rises will come and they will go," he said.

"Let me make this point: let's suppose the situation deteriorates in Iran, then you would expect the petrol price to go up.

"It could go up very, very substantially.

"Now the Australian Government of course has to bear in mind assistance to families and we do."
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