Rising world oil prices to blame for high petrol costs: Costello. 07/04/2006. ABC News Online

Federal Treasurer Peter Costello says the rising cost of petrol as Easter approaches is most likely to be the result of rising world oil prices.

Experts are tipping that the price of fuel will reach $1.40 a litre in most capital cities and motoring groups have accused the oil companies of greed.

Prime Minister John Howard will ask the Australian Competition and Consumer Commission (ACCC) to investigate allegations that petrol prices have been deliberately raised for the Easter holiday period.

But the ACCC is stressing that it can only monitor prices and has no power to influence how the cost of petrol is set.

This has prompted the Opposition to call on the Government to give the ACCC permission to investigate whether there is any evidence of price gouging or collusion in the industry.

Mr Costello says the cause of the high prices is more likely to be generated from international markets.

"You can see what's causing the price jump today because it's the world oil price," he said.

"When you see the world oil price go up on international markets with a delay you will see petrol prices go up and when you see the world oil price go down with a delay you will see it go down again."

The NRMA also says an investigation into rising petrol prices will be pointless unless the consumer watchdog is given more powers.

NRMA spokesman Alan Evans says the ACCC does not have the power to do any more than monitor the price of fuel.

Mr Evans says the recent increases were too close together to be a coincidence.

"I'm a cynic and I just find it too coincidental that in the one day in Sydney, on Tuesday and then spread throughout the whole of New South Wales, prices increased by all four major oil companies by 12 cents across the course of the day - we haven't seen that for years," he said.

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