Petrol price rise amid war in the Middle East adds to cost-of-living focus in SA state election
Vanessa Richmond worries about the costs of feeding her nine-month-old daughter, Arabella. (ABC News: Ashlin Blieschke)
In short:
The major parties have focused on cost-of-living as prices rise for essentials ahead of the South Australian state election.
In South Australia fuel prices have been a key concern, with a 139 per cent increase in demand on the Adelaide fuel terminal.
What's next?
Labor wants more monitoring of petrol prices, while the Liberals have called for the fuel excise to be reduced.
New mum Vanessa Richmond says she always knew having a baby would be expensive, but she was not prepared for the extra strain on her household budget from an unfolding overseas conflict.
The war in Iran is pushing up the price of oil, leading to regular unleaded prices reaching up to $2.39 in some parts of metropolitan Adelaide on Tuesday, and Ms Richmond is preparing for a flow-on effect to other everyday items.
"Petrol this week has just gone way up," Ms Richmond said.
"I'm sure everything's about to follow — food and that — and everyone's going out and stocking up on everything like it's COVID times again."
Ms Richmond gave birth to Arabella nine-and-a-half months ago.
She has committed to her daughter eating well and was paying $250 a week for groceries before the conflict between the US and Israel and Iran started.
She is worried about further increases.
"Babies love fruit and that's all she eats. So, I spend so much money on food, fruit for her, yeah, just feeding the family," Ms Richmond said.
Service stations in Adelaide have seen long line-ups. (ABC News: Guido Salazar)
Different ideas to ease strain
While there are few levers state governments can pull during global events, both the major parties are emphasising their plans to ease the cost of living ahead of the state election.
Labor's big-ticket item is to abolish public school fees, which Treasurer Tom Koutsantonis said would "actually help families lower their costs", while opposition spokesman Ben Hood said his party's pledge for 50 cent public transport fares would ease congestion and give immediate relief "especially as we consider what is going on in the Middle East".
Adelaide University economist Susan Stone said it was not surprising both parties were looking to secure votes with promises to make life easier for struggling families.
"We see that in South Australia, we tend to be spending more than other states on things ... as a share of our income — on things like fuel and electricity, on things like transport,"Dr Stone said.
"Since COVID, food inflation has been quite high, and we've seen a bit of volatility in this sense.
"For example, in the last quarter, we saw that beef, veal went up a great deal in South Australia, and actually across Australia."
Economist Susan Stone says higher food prices are cutting into household budgets. (ABC News: Justin Hewitson)
Housing costs create worries
ABC News met Ms Richmond at a Wriggle and Giggle event at the Campbelltown City Council Library, which is in the marginal Liberal seat of Hartley.
She said she was doing her best to save money.
"We do cloth nappies … clothes, all our clothes are second-hand or given to us," she said.
She and her partner would like a second baby, but question whether they will be able to afford the change.
"So, we're in a tiny little house at the moment, but if we had a second kid, we'd have to go somewhere bigger, so we're actually not really sure what we're going to do,"she said.
Ms Richmond recognised both major parties were "trying" to ease cost-of-living pressures, including on housing.
"It's a big factor that they have to address," she said.
Vanessa Richmond wonders how she will afford a second child. (ABC News: Ashlin Blieschke)
Call for fuel action
But it was petrol prices that has been the immediate focus, prompting Premier Peter Malinauskas to host a fuel situation roundtable on Monday.
The Premier said there had been a 139 per cent increase in demand on the Adelaide fuel terminal, and a 180 per cent increase in demand on the Port Lincoln fuel terminal.
The Treasurer said Labor had pledged $1.2 million to extend petrol price monitoring to crack down on retailers taking advantage.
"I'm not quite sure how they're justifying pricing at over $2, but it could get worse," Mr Koutsantonis said.
"I'm very worried about that. I'm worried about the war not having a strategic end."
Treasurer Tom Koutsantonis says there is sufficient fuel supply. (ABC News: Lincoln Rothall)
He said people needed to stop panic-buying and hoarding fuel.
"This country has adequate supply and if we all behave the way we would normally behave, it would be no problem,"the Member for West Torrens said.
Mr Hood said temporary relief from increasing petrol prices was needed and the Liberals were urging the federal government to halve the fuel excise to 26.3 cents per litre for three months.
"We know that from a regional context, we've seen many fuel stations simply have 'out of order' put on their diesel pumps or their unleaded pumps as well," he said.
"That puts significant pressure on regional communities."
Shadow Treasurer Ben Hood wants a lower fuel excise. (ABC News: Che Chorley)
Mr Koutsantonis said reducing the excise would not help.
"I think the only thing that'll keep downward pressure on these prices is ultimately an end to the conflict," he said.
"Taking away the government's ability to respond to this by removing the excise, you won't see prices drop because what will happen then is that tax reduction will be eaten up by the retailers."
Key Labor cost-of-living commitments:
- $148m to abolish public school fees.
- $8m over four years to expand the Seniors Card scheme to all South Australians over the age of 60, regardless of how many hours they work.
- $45.5m for new out of school hours care places.
- $19m for free year 7 public school camps.
- $18.5m for an IVF rebate scheme.
- $16m Patient Assistance Transport Scheme subsidy increase.
- $14.4m for sport and music vouchers for students.
- $12.8m for Metrocard extension to Murray Bridge.
- $1.2m for a petrol price monitoring scheme.
Key Liberal cost-of-living commitments:
- $370m to lift the payroll tax threshold from $1.5 million to $2.1 million, including $80 million in payroll tax exemptions for all apprenticeships.
- $240m to reduce regular AdelaideMetro fares to 50 cents. Student 28-day passes will remain at $10.
- Guarantee a new natural gas power station.
- Ensure the ongoing operation of Torrens Island Power Station B.
- $46.6m for an IVF rebate scheme.
- $45m for solar and battery rebates.
- $37m for expanding the Patient Assistance Transport Scheme.
- Free flu vaccines.