In the grip of oil

THERE may be a debate about the cause but there is no doubt about the effect: the world is on the verge of an energy crisis.

The signs are everywhere.

This week, Qantas boss Geoff Dixon said the airline would ground planes, cancel routes, slash jobs and freeze senior pay packets to combat rising jet fuel prices.

Mr Dixon lamented that Qantas had “no control” over rising fuel costs – sentiments echoed by other airlines such as Air France KLM, which has flagged a sharp decline in operating profits.

Motorists are also feeling unprecedented pain at the pump, with petrol prices hovering near the $1.60 a litre mark in Melbourne this week.

Herald Sun