Petrol prices have again fallen considerably, now at a 12 month low. This is the second fuel price drop in two weeks. The Australian Institute of Petroleum says that the average price of unleaded petrol was $1.33 per litre. This is almost 7c lower than last week.

Cheif equities economist, Craig James, from Commsec has stated that he believes prices could easily fall back to $1 a litre. This is after oil contracts in New York were stading at US$63.56 per barrel.

The only thing holding this at risk is the Organisation for Petroleum Exporting Countries (OPEC), who had an emergency meeting last week and agreed to cut production levels. If production levels are enough, prices will climb again.

Have your say: What do you think of these petrol prices?

It has been announced that Australia’s automotive industry is also losing out from the global financial crisis. This became apparent when the Federal Chamber of Automotive Industries (FCAI) announced their latest sales figures. It is hoped that the RBA’s recent interest rate cut will help to boost car sales.

In FCAI’s VFACTS bulletin, around 79,000 cars where claimed to be sold in October. This figure is almost 11.4% lower than October 2007. Chief executive of FCAI, Andrew McKellar stated that “These figures confirm that the global financial crisis is having an impact on broader economic activity, including the new vehicle market”.

This comes moments after Toyota, Japan announced their profits will be half that of prior expectations. There is no doubt, the financial crisis has hit the automotive industry hard. This places the Australian Automotive Industry at risk of collapse. Holden are still have the top selling car, the Commodore, while Toyota remain Australia top car seller.

Australia’s Deputy Prime Minister has today stated that the receiver, McGrathNicol, is assuring that childcare centres operated by ABC Learning Centres will remain open. Gillard states that this is a crucial job required of the Government as many Australians rely on these services.

Ms Gillard refused to state whether the Government is planning to use taxpayer funding to support the childcare centres. However, it was stated that the Australian Government was “working hard” to assist the creditors and McGrathNicol.

Today, the Commonwealth Bank (CBA) also announced that they were exposed significantly to ABC’s centres. The figure stated was $240 million. This brings the total exposure of Australian banks to ABC Learning centres to around $762 million.

It is said that around 120,000 children attend the ABC childcare centres and over 16,000 staff are employed within these. Updates of the Government’s status with ABC can be found on the My Child website.

Telstra says forming an alliance with Microsoft to deliver IT services and software will lead to Australian businesses increasing their productivity.
The partnership also sees the pair go head-to-head with corporate-mobile giant Research in Motion - maker of the popular BlackBerry smartphone - by offering a corporate email and applications service for six Windows Mobile devices.
The alliance will offer integrated communications services that are easier to install and use, and require less maintenance than current services, the companies say.
Telstra group managing director of product management Holly Kramer said the collaboration would deliver in telephony, email and conferencing.
“Our customers are seeing convergence between networks and applications and between fixed and mobile devices,” she said in a statement.
“We are turning this convergence into meaningful products that deliver a better use experience and productivity benefits for their business.”

The duo are also offering IP telephony and communications services such as click to call, presence, instant messaging and video and web conferencing.

As reported this week, T-Suite will commercially launch early next year, the telco said this week ahead of the Microsoft announcement today.

The Microsoft applications are in pilot phase and will be commercially available in mid-2009.

Prices for T-Suite have not been disclosed but Telstra said customers would be charged $4 per user per month for standard desktop security and around $20 per user/month for collaboration software.

Neither company would disclose the revenue sharing agreements, but said the split will differ for each service.

“The approach of the different components of the alliance are very different,” Microsoft Australia and New Zealand managing director Tracey Fellows said. “What we’ve done is make business cases on where we see the opportunity and investments that we’re both making.”

Telstra will exclusively sell the Windows Mobile offering while other services will be sold through both parties’ reseller channels.
Microsoft Australia communications sector director, Kevin Brough, denied the move to partner with Telstra was an admission that the company had failed to crack the small business market.

“I just don’t see it that way. “I think if you look at the Microsoft penetration in the business space today, it’s pretty good.”

“This is a new space we’re going into and we’re going to blaze a path together here and see what happens.”

As the dollar weakened against the euro oil prices have sky-rockettedand on evidence that OPEC crude exporters were cutting production as promised, analysts said.

Earlier in the day the price of Brent North Sea crude sank close to a 21-month low point under $US59 per barrel as traders sold amid weak energy demand worldwide, they added.

Prices had fallen sharply also on market jitters about the outcome of the US presidential election, said market watchers.

Brent North Sea crude for December delivery stood at $US66.55 per barrel, up $US6.07 from Monday’s close.

“You’re just seeing the dollar give back a lot of its gains in [the] last couple sessions. That’s leading a lot of commodities higher,” said Raymond Carbone, president of brokerage Paramount Options, cited by Dow Jones Newswires.

A weaker dollar makes oil priced in the US unit cheaper for buyers holding stronger currencies, pushing up demand. On Tuesday the euro jumped back above $US1.30 in late European deals.

Earlier on Tuesday Brent slumped to $US58.38, the lowest level since February 21, 2007.

At 5:50pm (GMT) New York’s main contract, light sweet crude for December delivery, stood at $US70.55 per barrel, up $US6.64. Earlier it had fallen to $US62.25.

Analysts said that prices rebounded also on news that OPEC producers were implementing cuts to output, as was pledged at a meeting of the cartel last month.

Algeria has slashed oil production by 71,000 barrels per day to honour a OPEC decision to reduce global daily output by 1.5 million bpd, the APS news agency reported.

Algeria produced as many as 1.45 million bpd before the energy ministry implemented the cuts.

OPEC said last month it would reduce production to halt the slide in oil prices, which have lost more than half their value since striking record highs above 147 dollars a barrel in July when fears of supply disruptions sent them rocketing.

But OPEC’s decision to slash output by 1.5 million barrels a day from November 1 will not immediately shore up prices, the cartel’s chief, Algerian Energy Minister Chakib Khelil, said last weekend.

The Organisation of Petroleum Exporting Countries, whose members pump about 40 per cent of the world’s oil, holds its next scheduled output meeting in Oran, Algeria, on December 17.

Fresh economic modelling to be released on Thursday shows emissions trading will not hurt industry or the economy, the government says.
The long-awaited Treasury data, one of the biggest economic modelling exercises ever done in Australia, focuses on what it will cost to tackle climate change.
Climate Change Minister Penny Wong was on Wednesday putting a positive spin on the modelling ahead of its release, saying it shows there is nothing to fear in emissions trading.
Some industry chiefs have warned emissions trading, due to start in 2010, will push up their costs and force them to move overseas.
They want the scheme delayed or more compensation.
Senator Wong says emissions trading will not force businesses offshore.
“What the modelling shows is that Australian industries will remain competitive and there are significant opportunities in us taking action on climate change,” she told ABC Radio.
“We can take action on climate change but also retain a strong economy.”
The government says the modelling shows proposed compensation for industry - they will get up to 90 per cent of their permits for free - will keep businesses afloat.
Treasurer Wayne Swan said the data showed emissions trading would not hurt economic growth.
“What the modelling will show is that we can deal with climate change … without having a dramatic impact on economic growth,” he told Macquarie Radio Network.
The government has not formally released the modelling but sections have been reported in the media on Wednesday.
According to the Australian Financial Review, the modelling shows the government plans to buy up to a quarter of its carbon credits from overseas to meet emissions reductions targets.
This is a relatively cheap way to meet the target but is criticised by conservationists for not reducing emissions in Australia.
Meanwhile, a poll has shown most Australians approve of emissions trading and are willing to pay more to tackle climate change.
The Australian National University phone poll of 1,000 people found 54 per cent of respondents supported emissions trading while 34 per cent opposed it.
At least 60 per cent of those surveyed were prepared to pay more and accept a cut in living standards to help the environment - although the poll was taken before the worst of the world economic crisis hit.
Concern about climate change is translating into people changing their habits.

After an hour of havoc this morning, with Twelve Independently owned petrol stations cutting the price of their petrol by over 40 cents per litre, traffic has resumed to normal. However, One service station owner is contemplating continuing his fight by resuming the discount fuel offer.

The Speedway Fairfield, on the Horsley Drive in Fairfield, claims that they may offer drivers more fuel tonight, October 30 2008, between 6 and 7pm. This is definitely making a statement against the Woolworths and Coles controlled Service Stations who are increasing become a force in petrol supply.

For everyone who lives in Fairfield, I recommend you check the Speedway in Fairfield to see if you can grab some of the cheap petrol.

It has just been announced that service and petrol stations will be again offering drivers petrol for just 99c per litre. Twelve (12) Petrol stations that will be participating in the fight for independent petrol stations across Sydney.

The Twelve participating petrol stations that will be offering 99c fuel between 8 and 9 am tomorrow, 30 October 2008, are:

BP Independent Blacktown, 163 Sunnyholt Rd, Blacktown

BP Independent Denistone, Quarry Road, Ryde

BP Independent Williamstown, Victoria Rd, Williamstown

Metro Croydon, Hume Hwy, Croydon

Metro Bankstown, 158 South Terrace, Bankstown

Rebel Petrol Earlwood, 200 Homer St, Earlwood

Speedway Auburn, 238 Cumberland Rd, Auburn

Speedway Fairfield, Horsley Dr, Fairfield

Speedway Smithfield, 26 Cumberland Highway

Speedway Meadows, 359 Elizabeth Dr, Mt Pritchard

Unigas Haberfield, Parramatta Road, Haberfield

United Granville, Mona St, Granville

Be sure to line up early, because with petrol prices this cheap, you know it form massive queues at the bowser and traffic jams. Sydney siders better be prepared for massive lines of traffic around these petrol stations. Who knows why commuters always get affected by these protests.

Have your say - Do you agree with the independent service stations?
Have you receieved 99 cent fuel?

Fortescue Metals Group Ltd is a step closer to obtaining access to railways owned by BHP Billiton Ltd and Rio Tinto Ltd after Treasurer Wayne Swan ruled they should be opened to third parties.
Rio Tinto Ltd, the world’s second largest iron ore producer, says it is disappointed by the federal government’s decision to allow third-party access to its Hamersley and Robe railway lines in Western Australia.
Swan’s decision comes after the National Competition Council (NCC) recommended that the three separate railways in the Pilbara region be opened up to third parties to improve competition in the haulage market for the metal.
“Rio Tinto is very disappointed by the Treasurer’s decision to allow third-party access to its infrastructure in the Pilbara,” Rio Tinto iron ore chief executive Sam Walsh said in a statement.
“Far from producing a clear benefit to Australia, the decision brings a significant risk of revenue loss to the national economy, resulting in a present-value cost to GDP of up to $30 billion.”
“On consideration of the evidence presented, the NCC determined that all relevant matters for declaration are satisfied and therefore recommended the services be declared,” Swan said in a statement.
“I accept the NCC’s recommendations and I am declaring the services … for a period of 20 years commencing on 19 November 2008.”
Peter Ogden from BHP would not comment immediately.

A new thermal coal mine for central Queensland could be in operation as early as 2012 now that an agreement between miner Hancock Prospecting and contractor Thiess has been made.

Thiess, a subsidiary of Leighton Holdings, announced yesterday it had been engaged to co-manage with Hancock Prospecting the pre-feasibility study (PFS) for the Alpha Coal Project.
The mine is projected to produce 30 million tonnes of thermal coal a year at full capacity, or more than one billion tonnes over at least three decades.
Thiess managing director David Saxelby said the PFS, due for completion this year, would explore the viability of developing the mine.
Also being considered are rail and port options.
“If the feasibility work demonstrates viability and we believe it will, construction should commence in 2010 with the first coal mined in 2012″, Saxelby said in a statement.
The Alpha Coal Project has reserves estimated at more than 3.4 billion tonnes.
The coal, used for principally for power generation, is destined for Asian and Indian markets.