Dismal small businesses need RBA help SMALL business needs an immediate interest rate cut and assurances from the federal government the sector won't be hit in the May budget, key lobby groups say. Two new surveys for the December quarter released on Monday show small business in a dismal state, with one showing profitability near the lows seen during the 2008-2009 global financial crisis. "The sector was under significant pressure over that period, and it is certainly continuing to endure very difficult trading conditions," Australian Chamber of Commerce and Industry (ACCI) chief economist Greg Evans told reporters in Canberra. The Reserve Bank of Australia (RBA) would be justified in making another interest rate cut when its board met in March, he said. Retailers have backed the ACCI's rate call after a poor Christmas trading period. "Many would be hard pressed to take home a wage at the end of the day in the current conditions," Australian Retailers Association executive director Russell Zimmerman said in a statement. The ACCI small business survey showed the conditions index eased to 40.5 points in the December quarter, from 40.7 in the previous three months, and was still well below the 50 mark that separates contraction from expansion. Similarly, the National Australia Bank's SME survey showed conditions fell two index points to minus seven in the quarter, indicating a majority of respondents reported weakening conditions in the period. Confidence also fell two points to an index level of minus seven, as pessimists outnumbered optimists. Opposition small business spokesman Bruce Billson said small business was being taken for granted by the Labor government. "Not only is a small business paying the price for an unhelpful government, but so is the wider economy," he said in a statement. The ACCI's Mr Evans doesn't want to see the government shore up its ailing budget position by removing beneficial business tax arrangements. "We are yet to see any major recovery in respect to the non-mining economy, and an increase in taxes certainly won't help that process and will diminish confidence," he said. Another concern for business is rising petrol costs, which reduce consumer spending and further depress conditions for retailers. Commonwealth Securities chief economist Craig James believes the average unleaded fuel price could break $1.50 per litre over the next week or so, as international oil prices rise in a more settled global economic environment. It would be the highest price since May last year, adding to the average monthly household spend on petrol, which has already risen by $12 since the start of the year to more than $178. "Petrol is the single biggest purchase for most households, and even those without a car will feel the pain through higher delivery costs, higher transport fares and increases in prices of goods with a high transport component," Mr James said. The central bank will on Tuesday release the minutes of its February 5 board meeting, at which it left the cash rate at three per cent after several reductions over 2012. RBA governor Glenn Stevens and his economics team will face their regular six-monthly grilling in front of the powerful House of Representatives economics committee on Friday.