Higher petrol prices is like a double sided knive!!! Like u say...

Higher petrol prices is like a double sided knive!!! Like u say less cash for consumers to spend so less demand & drop in prices(in theory!!) But what could happen is that the big companies pass the fuel price rise onto consumers(such as qantas, etc)> this then has a flow on effect through out the whole economy as everyone try to recover higher costs. Over the last year supplies have been coping the higher energy costs by accepting reduce margins but sooner rather than later they wont be able to keep doing that. THEN you have big jump in infaltion!!! RBA will need to act soon to stop that from hapenning

Cheers