Weekly petrol prices
- According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol rose by 1.1 cents per litre to 140.2 cents a litre in the week to June 19.
- Global oil prices recorded a sharp fall in the past week which should translate into lower pump prices in a fortnight’s time. The Singapore unleaded price fell by almost US $7 a barrel in the past fortnight. CommSec expects pump prices to fall by around 3-5 cents a litre in a fortnight’s time.
- Since the peak on May 10, the national average wholesale (terminal gate) price has fallen by 6.5 cents a litre while the national retail price has fallen by 5.7 cents since the peak.
What does it all mean?
- After sliding for five consecutive weeks petrol prices have once again recorded a rise in the past week. But there is certainly more good news for motorists around the corner. On the global front oil prices have recorded some pretty dramatic falls. In fact the Singapore unleaded price has slumped by almost US $8 a barrel in just over a week – a result that should ensure that petrol prices across Australia fall by around 3-5 cents a litre in a fortnight’s time.
- Given the lack of momentum in the domestic economy a further fall in petrol prices will be a welcome result. The drop in petrol prices will help to support confidence and spending power. In fact since the average monthly household fuel bill has fallen by almost $7 to $196 a month in the past six weeks. And given the recent weakness in consumer and business confidence any improvement in household finance should provide at least a modest degree of support in shoring up sentiment.
- Importantly the global oil market has been well supplied at present, and given the concerns over global growth, oil prices should hold around current levels in the near term. In addition the decision by Saudi Arabia to increase oil production in contrast to OPEC is certainly a positive and should keep petrol prices subdued in coming months.
What do the figures show?
Petrol prices:
- According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol rose by 1.1 cents a litre to 140.2 cents a litre in the week to June 19. The metropolitan price rose by 1.8 c/l to 139.0 c/l,while the regional average price fell by 0.2 c/l to 142.7 c/l.
- Average petrol prices across states over the past week were: Sydney (rose 4.5 cents to 137.0 c/l), Melbourne (up0.4 cent to 139.5 c/l), Brisbane (up 1.0 cent to 140.8 c/l), Adelaide (up 3.2 cents to 140.1 c/l), Perth (down 0.4cents to 138.2 c/l), Darwin (down 0.3 cents to 153.6 c/l), Canberra (down 1.6 cents to 138.0 c/l) and Hobart (down 0.4 cents to 146.4 c/l).
- The national average wholesale (terminal gate) rose by 1.3 cents over the past week to 131.95 cents a litre today.Since the peak on May 10, the terminal gate price has fallen by 6.5 cents a litre. The retail price has fallen by 5.7 cents since the peak.
- Last week, the key Singapore unleaded petrol price fell by US$6.80 (5.5 per cent) to US$118.36 a barrel. In Australian dollar terms the Singapore gasoline price fell by $5.63 (4.8 per cent) over the week to $112.49 a barrel.
What is the importance of the economic data?
- Weekly figures on petrol prices are compiled by ORIMA Research on behalf of the Australian Institute of Petroleum. National average retail prices are calculated as the weighted average of each State/Territory’s metropolitan and non-metropolitan retail petrol prices, with the weights based on the number of registered petrol vehicles in each of these regions.
What are the implications for interest rates and investors?
- A further fall in petrol prices will be beneficial for the economy. Retailers already have to contend with the effects of the weather on seasonal spending, consumer conservatism and higher utility prices.
- Filling up the car with petrol is the single biggest outlay that Aussie households make each week so changes in petrol prices have a big impact on the budget and spending patterns. The average household is paying almost $7 less on fuel than they were just six weeks ago. However a look at a longer time frame shows that households are spending an additional $30 a month more on petrol compared with just over ten months ago.
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