From Canberra, economics correspondent Mark Simkin reports. Just as motorists were getting used to slightly cheaper petrol, OPEC has done what cartels do best - manipulate prices. It's slashed global oil production by five per cent, and as Iran's Oil Minister made clear when announcing the decision, there could be further production cuts to come. It's not just motorists who'll suffer. The global economy is more dependent on oil than ever, so any increase in price will slow growth.
Some economists believe the United States is already teetering on the brink of recession.
Richard Gibbs from Macquarie Bank says a sustained rise in energy prices could push it over the edge. That is the income transfer you've seen from the Western economies to the OPEC oil producing nations has not been met, or accommodated, with higher prices in the Western economies, it's been accommodated through a lower growth. On the February 1, the same day the OPEC changes take effect, the Federal Government's petrol excise will pump up prices by another two cents a litre. Motoring groups are now stepping up their campaign against the tax. Ken Odgen is the manager of Public Policy at the Royal Automobile Club at Victoria.