$10-a-litre gas 'worst case scenario'

The Automobile Association is casting doubt on an Australian report suggesting the price of petrol could hit ten dollars a litre within the next decade.

The Commonwealth Scientific and Industrial Research Organisation came up with the figure after studying oil prices, stocks and emissions trading schemes. It says more effort should go into developing alternative fuels.

AA spokesman Mark Stockdale says the $10 figure is a worst case scenario and at the extreme end of the predicted range of prices. However, he says the report raises a valid point about the need for alternative fuel sources.

In overnight trade, crude oil reached yet another record high of US$147 a barrel. It has since fallen back to US$145.

- NEWSTALK ZB