It is clear from the polls that voters believe Kevin Rudd promised to do something about rising petrol and grocery prices before the federal election last year. Nick Xenophon put his finger on the Government’s problem of balancing perception and reality when he said: “I just don’t think [FuelWatch is] going to do what it’s meant to do.”

According to the latest Newspoll survey, voter satisfaction with the Opposition Leader fell from 33 to 31 per cent, similar to his lowest satisfaction level in March after the Rudd Government delivered an apology to the Stolen Generations.

The Newspoll support for Peter Costello as Liberal leader has created uncertainty about Labor’s dominance continuing as small signs emerge of a poll improvement for the Opposition and real success comes in by-elections.

Despite a trend showing a slow decline in Labor’s primary vote and a decline in Mr Rann’s high personal approval ratings - which fell from 60 per cent in January-March last year to 51 per cent in April-June this year - the South Australian Premier is still regarded as Labor’s “trump card” for the 2010 election.

The latest Newspoll survey of leadership abilities reveals that the Prime Minister has suffered a big rise in the percentage of voters who consider him arrogant. However, Mr Rudd still holds double-digit leads over the Opposition Leader, Brendan Nelson, in most key areas.

The latest Newspoll survey shows the former treasurer, who has sat on the back bench since the Coalition lost the election, emerging as the popular favourite to be Liberal leader - doubling his support since December. It also confirms the Government’s 14-point lead over the Opposition on a two-party preferred basis.