April 23, 2008

SOARING PETROL PRICES SET TO FORCE ALMOST ONE IN THREE AUSTRALIAN MOTORISTS OFF THE ROAD

Almost one in three Australian motorists (30%) say they will stop using their car to commute to work if petrol prices reach $1.75 per litre.

A further 47% say they have already reduced their car usage due to rising petrol prices, according to a newly released nationwide survey by leading low cost car insurance provider, Budget Direct.

The Budget Direct Petrol Price Survey, with more than 2500 responses nationwide, further reveals that 54% of Australian motorists have already considered trading their current vehicle for a more fuel-efficient model and a further 7% have already done something about it.

Associate Director for Budget Direct, Jonathan Kerr said if petrol prices continue to rise and more motorists are forced to consider public transport, the current Australian commuter crush could get a lot worse.

“This morning the crude oil price on the US Futures market set an all time high of $119.90, representing an 88 percent rise from a year ago. It looks like prices at the pump are likely to continue their upward trend, which may well force more motorists to rely on a public transport system that is already close to capacity.

“If petrol prices do rise rapidly and 30% of Australian commuters suddenly turn to public transport the ramifications could cripple an already struggling system,” Mr Kerr said.

The survey results also shows that just over a quarter of VIC, NSW, QLD and WA motorists claim petrol prices would have to go over $2.25 per litre before they will consider not using their car to commute to work.

Meanwhile just over a third of NSW (37%), VIC (28%) and QLD (27%) motorists said they were happy to pay the current fuel prices because they like their car, with WA motorists (42%) the least likely to be driven off the road by high petrol prices.

Mr Kerr recognises that motorists who are unaffected by the rising petrol prices are those who drive company cars, have access to adequate public transport, and those that can either walk or ride to work. For some motorists public transport simply isn’t an option.

Budget Direct is a low-cost car insurance provider that offers competitive car insurance quotes to drivers in Australia. Budget Direct is a wholly owned Australian insurance provider and is part of the international Budget Insurance group of companies headquartered in the British Isles. The Budget Insurance group of companies administers more than 3 million policies and more than $1.5 billion in premium. Auto & General Insurance Company Ltd underwrites Budget Direct’s policies.

For more information about low cost car insurance australia go to www.budgetdirect.com.au