Australian authorities have warned that the price of petrol could soar to $2.33 per liter if Labor wins the upcoming election. Petrol currently costs an average of $1.50 per liter, meaning the potential 83 cent price jump will hit drivers hard. And diesel drivers can’t breathe a sigh of relief either, as federal Energy Minister Angus Taylor predicts their costs will shoot up by 27 cents per liter too.

The impact of a carbon price tax

Australia hasn’t yet officially announced when its next election will take place. However, it’s looking likely that it will be some time in May. Every recent opinion poll indicates that Labor will win the election. As their long-term goal is to cut carbon emissions in the country by 45% by 2030, Taylor strongly believes that they will impose a carbon price tax, which will result in fuel prices rocketing to sky-high levels. This belief is backed by evidence from BAEconomics, which states that the party’s election policy will include a carbon restriction on the economy that equates to $326 per tonne of emissions.

Getting more fuel for your money

The most popular car in Australia is currently the Toyota Hilux. At today’s prices, the average HiLux owner would fork out just $120 to fill up their vehicle with unleaded fuel. But, should Labor take control of the government in May, this price would leap up to $186, an increase of 55%. To avoid being severely impacted by this price spike, it’s essential that you’re smart with the way you shop for fuel. Comparing the price of fuel at your local petrol stations is a must, and can potentially save you hundreds of dollars over the course of a year. Meanwhile, paying with a cashback credit card will secure some extra cents in your pocket every time you fill up.

Continuous price hikes

According to Budget Direct, Australian drivers are currently spending $71.50 per week on fuel. Motorists in the country have already had to deal with multiple petrol price rises over the course of the last 12 months. In August 2018, petrol prices reached a four-year high. By October, petrol prices were 20.7% higher than they were in October 2017. So, the threat of another sharp price rise could be enough to deter the public from voting for the Labor party altogether.

Australia’s rising petrol prices are already a concern for many motorists. And, with the threat of a major price surge around the corner, it’s likely that many drivers will reconsider their voting options, as well as their mode of transport.

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