The federal Liberal leader made the comments during a visit to the Redlands on Monday as he continued his tour of Australian communities seeking to improve his low approval ratings.

On Tuesday, Prime Minister Kevin Rudd announced a FuelWatch system would be introduced in Australia from December 15.

The FuelWatch system in Western Australia forces petrol station operators to advise the public of the next day’s fuel prices each afternoon so motorists can buy petrol ahead of any planned price rises.

The system tends to reduce price variations from day to day.

Dr Nelson on Monday warned of downsides if the government followed calls to introduce the system nationwide.

“We could see battlers who are filling up earlier in the week actually paying more for their fuel over the cycle than they do at the moment,” Dr Nelson told the Bayside Bulletin.

The Liberal leader brushed off ongoing speculation about his leadership, insisting he was “very” confident of his position despite his nine per cent opinion poll rating as preferred prime minister.

In other issues, Dr Nelson strongly rejected calls for a boycott of the Beijing Olympics over China's human rights record in Tibet, but he supported the right of people to protest peacefully during the Olympic torch relay.

While in the Redlands, Dr Nelson spoke to staff at Capalaba motorcycle parts manufacturer John Titman Racing before visiting a University of the Third Age meeting at the Donald Simpson Centre and talking to shoppers at Capalaba Park alongside Liberal Member for Bowman Andrew Laming.

Bowman is a marginal federal electorate which the Liberals hold by a knife-edge.

Comment on this story below