Rising fuel prices in Asia-Pacific

Last Updated: 4 June 2008

The impact of record global oil prices is being felt worldwide. [Reuters]

The impact of record global oil prices is being felt worldwide. [Reuters]

The soaring price of fuel is causing street protests and political unrest around the world, from Indonesia and Bangladesh, to France, Russia and the Balkans.

World leaders are looking for answers to a situation which is impacting most heavily on those least able to afford it.

At the end of May, the World Bank announced $US1.2 billion in loans and grants to help poor countries cope with food and fuel costs.

In Asia, while the world's number-two consumer China is resisting raising prices until after the Beijing Olympics in August, other countries including Taiwan, Indonesia and Sri Lanka have been forced to hike pump rates as governments struggle to fund subsidies.

India is expected to raise prices slightly and Malaysia may make a similar move.

In the Pacific, the impact of rising fuel costs is effecting all levels of society, including tourism, electricity and the environment.

In Australia, the federal government is looking at several measures to help ease costs for motorists, including petrol retailer monitoring and rebates for conversion to alternative fuel sources.

No Pacific country untouched

There is no country in the Pacific that is not feeling the effects of rising international fuel prices.

Record prices and protests in Asia

Protests, subsidy cuts, fuel alternatives and lifestyle changes are all part of the way Asia is coming to grips with the rising costs of oil.

Government policy and Australian motorists

Australian Prime Minister Kevin Rudd has acknowledged that the petrol price debate is affecting his government's popularity ratings.

Much of the debate is about the high rate of car ownership and use in Australia and the impact of increased costs on household incomes.