BP says petrol prices may increase

Amid warnings that the cost of fuel may increase, it would seem wise that savvy investors look for ways to cut costs.

According to the ABC plans by the state government to place a ban on regular unleaded fuel and force motorists to use ethanol-blended fuel could result in large price increases.

Jamie Jardine, a spokesperson for oil giant BP, said that current ethanol supplies would not be able to keep pace with consumer demand.

"BP Group and BP Australia firmly believe the biofuels are going to have a significant role to play in transportation fuels going forward. We just don't believe imposing a mandate is the way to do it," asserted Mr Jardine.

"We think ultimately it is bad for consumers, it is going to reduce choice and potentially push up prices."

Mr Jardine made it clear that mandates were often better led by market-based mechanisms, rather than government mandates.

And while petrol prices may not be a concern for all Australians they could have an impact on the overall cost of living, making it important to look for savings in other areas.

With this in mind consumers may find it useful to compare gas suppliers in order to make sure they are getting the most for their money.

Posted by Callum Flemming