ADELAIDE—Forecasts of petrol prices hitting $8 a litre within a decade show the issue of future transport options requires a comprehensive policy response, Climate Change Minister Penny Wong says.
Senator Wong said a report from the CSIRO convened Future Fuels Forum, which included the worst-case scenario on petrol prices, made it clear that global oil prices would continue to rise.
"Obviously, Australians understand that and it's been something that Australian families have had to struggle with since the beginning of the year," she said.
"Australians do understand this and that is why Australians, over time, have started to adjust to higher fuel prices."
The CSIRO report addressed the need to reduce transport sector greenhouse gas emissions and the economic risks of increasingly costly and scarce oil supplies.
CSIRO spokesman John Wright said the future price of oil was uncertain.
"The forum's scenario modelling shows that if oil production peaks, prices could climb as high as A$8 per litre by 2018 in the most extreme case," he said in a statement.
The forum also modelled the inclusion of retail transport fuel in the proposed emissions trading scheme and suggested such a move could add about 10 cents a litre to the price of petrol.
Senator Wong would not comment on the government's detailed plans related to the emissions trading scheme which, she said, would be revealed with the release of a green paper next week.
But she said the CSIRO report was the reason the government was committed to a range of transport initiatives.
These included increased investment in transport infrastructure and funds to help develop more alternative fuel and low emission vehicles, the minister said.
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