PRIME Minister Kevin Rudd has vowed to insulate average families from the impacts of his global warming fight.

As oil prices hit a record $140 a barrel, the Prime Minister refused to say if he would include petrol in his carbon emissions trading scheme.

But he signalled compensation would go beyond help for pensioners and other vulnerable Australians that he had already committed to.

"Our approach to emissions trading . . . is that we will provide support, support to working families," Mr Rudd told 3AW yesterday.

"On the form of support, (there is a) whole series of options which the Government is working through at present."

Mr Rudd would not commit to a cut in petrol excise to offset a rise in fuel prices, as proposed by the Opposition.

But a view is emerging within government that it must compensate voters or its time in office could be short-lived.

Opposition Leader Brendan Nelson said motorists were already cutting fuel use because of rising prices - the key aim of an emissions trading scheme.

"As far as I'm concerned $1.70 a litre is enough of a price signal on petrol," Dr Nelson said.

Oil surged to a record $140 a barrel in trading in New York and Singapore, and there are predictions it could hit $170 this year.

In Melbourne, unleaded petrol nudged $1.70 a litre yesterday. Experts say it could rise by another 17c a litre under emissions trading.

Mr Rudd said he accepted that the price of energy and oil would increase.

"The key question is . . . how do you best support and compensate working families, working Australians, pensioners, carers, to deal with any price adjustment," he said.

The Australian Workers Union called for nuclear power to be considered as a stop-gap measure until renewable energy technologies become established.

AWU secretary Paul Howes said a rational debate on nuclear power was needed.

But Mr Rudd said nuclear power would not be put back on the table.

"We believe that we have a huge range of energy options available to Australia beyond nuclear with which and through which we can respond to the climate change challenge," he said.  Source