MOTORISTS may again be hit by rising petrol prices as another hurricane threatens the US.

Hurricane Rita is building off the Florida coast with experts predicting that by Friday it could be as powerful as Katrina, which flattened New Orleans three weeks ago.

Crude oil prices rose 1.9 per cent to $US67.48 a barrel as oil companies shut rigs in Rita’s path.

The storm, with 160km/h winds, is heading west across the Gulf of Mexico and is expected to strengthen before striking the Texas coast, home to a quarter of the US’s refining capacity.

In Australia, retail petrol prices were steady yesterday around recent lower levels but can be expected to rise next week because of higher crude oil prices.

John Howard yesterday left open the possibility of the federal Government directly checking the profit margins of oil-refining companies if the consumer watchdog failed to prevent profiteering.

“The Australian Competition and Consumer Commission has a monitoring role in this and we are in very regular contact,” the Prime Minister said on radio. “And if that (direct government checking) is necessary, we will do so.

“They (the ACCC) have certain powers. We believe they are discharging them. But you never have a static position in relation to something like that (in case) some further action is needed.”

Mr Howard’s remarks came on the eve of a fuel summit in Sydney..

Mr Howard, who originally described the summit as pointless, reversed his stance yesterday and is sending Assistant Treasurer Mal Brough as an observer.

Fears grow as Rita nears — Page 8

Business — Page 22