Aussie Drivers Say ‘G’By, Mate,’ to Gas Guzzlers as Prices Soar

High fuel prices are driving Australians off the road.

The government reported today that September gasoline sales dropped 10% compared to the same period in 1989.

Retail prices have jumped more than 30% since Iraq invaded Kuwait on Aug 2., to $2.45 a gallon from $1.95.

Although Australia is largely self-sufficient in motor fuels, the government’s policy is that even locally produced petroleum should be sold at world prices. This has led to widespread suspicions among Australian motorists that oil companies and the government have been profiteering at their expense. Both deny the allegations.

In fact, Resources Minister Alan Griffiths said, the government stands to lose about $468 million a year from its budgeted gasoline excise revenue if the drop in sales continues.

Even so, the sudden price rises have come as a shock for a country of 17 million where people have been driving 21 billion miles a year just commuting to work.

Car dealers say people are starting to bring in their bigger gas guzzlers and ask questions about the “economy” of smaller, more fuel-efficient models.

Meanwhile, the Australian branch of General Motors, Holdens, has put production on hold for its V-8 models, which had been in demand until recently. Ford Australia, which has the biggest Ford, the Fairlane, on its product list, also is reviewing its production schedules.