Weekly Petrol Prices
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Petrol prices drop
Petrol prices drop: According to the Australian Institute of Petroleum, the national average Australian price of petrol fell by 1.8 cents per litre to 149.9 cents a litre in the week to June 15. The petrol price has broadly trended sideways over 2014.
- Wholesale prices: Wholesale petrol prices are still falling in Australia, hitting a 21-day low of 141.85 cents a litre today.
- World prices: The Singapore gasoline price rose by US$3.15 or 2.6 per cent last week. But in Australian dollar terms, gasoline rose by a smaller $2.17 a barrel or 1.7 per cent, courtesy of a stronger Aussie dollar.
What does it all mean?
- World oil prices have lifted over the past week on fears that the violence in Iraq could lead to a disruption of oil supplies in the region. But the good news for Aussie motorists is that the Aussie dollar has also been rising, putting a cap on imported fuel prices. Importantly also US oil production continues to rise, hitting 44-year highs, and reducing worries about the potential for lower global oil supplies to boost prices.
- Still, oil prices bear watching, especially in eastern and southern states that are affected by variable discounting cycles. Sydney motorists could still get E10 fuel this morning at 138.7 cents a litre and ULP petrol at 140.7 cents, below wholesale prices close to 142 cents a litre.
- Based on recent movements in world prices, domestic petrol prices may edge up 2-3 cents a litre in a fortnight’s time. But at present the full benefits of lower wholesale prices haven’t been passed on at the pump.
What do the figures show?
Petrol prices
- According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 1.8 cents a litre to 149.9 c/l in the week to June 15. The metropolitan price fell by 2.5 c/l to 147.6 c/l, while the regional average price fell by 0.6 cents per litre to 154.5 c/l.
- The national average retail diesel price fell by 0.3 cents a litre to 159.3 cents a litre last week. The national wholesale (terminal gate) diesel price fell by 2.3 cents last week to 141.8 cents per litre.
- Average unleaded petrol prices across states and territories over the past week were: Sydney (down by 3.4 cents to 143.7 c/l), Melbourne (down by 3.0 cents to 143.8 c/l), Brisbane (up by 0.7 cents to 151.4 c/l), Adelaide (down by 9.1 cents to 148.1 c/l), Perth (down by 0.9 cents to 152.6 c/l), Darwin (unchanged at 173.0 c/l), Canberra (down 0.1 c/l to 157.2 c/l) and Hobart (down by 0.1 cents to 160.6 c/l).
- Today, the national average wholesale (terminal gate) unleaded petrol price stands at a 21-day low of 141.85 c/l, down around 2 cents over the week. Petrol is still trading below wholesale prices at Sydney pumps.
- Last week the key Singapore gasoline price rose by US$3.15 or 2.6 per cent to US$123.60 a barrel. In Australian dollar terms the Singapore gasoline price rose by $2.17 a barrel or 1.7 per cent last week to $131.24 a barrel or 82.54 cents a litre. But in the previous fortnight, Singapore gasoline fell by A$3.49 a barrel.
- Figures from MotorMouth show that petrol prices in Sydney and Melbourne are at or near the bottom of the discounting cycle.
- Weekly figures on petrol prices are compiled by ORIMA Research on behalf of the Australian Institute of Petroleum (AIP). 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. AIP data for retail petrol prices is based on available market data supplied by MotorMouth.
- The lift in world oil prices will keep central banks on edge about softening economic growth rates. A sharp and sustained rise in oil prices will stay the hands of the more hawkish central banks, that is, those seeking to lift interest rates.
- Higher global oil prices will keep downward pressure on airline, travel and other consumer discretionary stocks but underpin share prices in the energy sector.
- Petrol is the single biggest purchase for most families, potentially taking more than $100 out of wallets in one hit. If the price of petrol lifts with the violence in Iraq, it poses risks for consumer-facing businesses.
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 (AIP). 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. AIP data for retail petrol prices is based on available market data supplied by MotorMouth.
What are the implications for interest rates and investors?
- The lift in world oil prices will keep central banks on edge about softening economic growth rates. A sharp and sustained rise in oil prices will stay the hands of the more hawkish central banks, that is, those seeking to lift interest rates.
- Higher global oil prices will keep downward pressure on airline, travel and other consumer discretionary stocks but underpin share prices in the energy sector.
- Petrol is the single biggest purchase for most families, potentially taking more than $100 out of wallets in one hit. If the price of petrol lifts with the violence in Iraq, it poses risks for consumer-facing businesses.