Low petrol price provides a boost for familie

From

Weekly Petrol Prices

  • Petrol: According to data from the Australian Institute of Petroleum, the national average price of unleaded petrol fell by 3.3 cents to 127.4 cents a litre in the past week.

The petrol figures have implications for retailers, especially petrol marketing groups.

What does it all mean?

  • The Singapore gasoline price has lifted 6 cents a litre from the end-December lows in Australian dollar terms, although still well down from the October 2018 highs. Similarly, the Australia wholesale (terminal gate) price is up 5.5 cents a litre from lows to 117.7 cents. The Australian pump price is up almost 6 cents a litre from lows.
  • Assuming an average gross retail margin of 12-13 cents, motorists in the bigger capital cities should expect pump prices on average around 120-130 cents a litre. The problem is that discounting cycles complicate the situation. As does the lack of synchronicity between the southern and eastern capitals. But overall, motorists have little to complain about with current petrol pricing.
  • Compared with the highs in October last year, Aussie families are saving on average $53 a month on filling the car with petrol – equivalent to a quarter per cent rate cut on a $350,000 mortgage.
  • Filling up the car with petrol is the biggest single weekly purchase for most families. The good news is that the cost of filling up the car with petrol is the cheapest for this time of year since 2016. With some petrol signboards showing prices as low as $1.09 a litre, the cost of petrol isn’t holding back consumers from spending on either essential or discretionary purchases.

What do the figures show?

Petrol prices

  • According to data from the Australian Institute of Petroleum, the national average price of unleaded petrol fell by 3.3 cents to 127.4 cents a litre in the past week.
  • The metropolitan petrol price fell by 4.4 cents to 125.4 cents per litre, and the regional price fell by 1.1 cents to 131.5 cents per litre.
  • Average unleaded petrol prices across states and territories over the past week were: Sydney (down by 9.5 cents to 122.9 c/l), Melbourne (down by 6.7 cents to 122.9 c/l), Brisbane (down by 5.5 cents to 122.5 c/l), Adelaide (up by 12.7 cents to 134.2 c/l), Perth (down by 1.1 cents to 127.9 c/l), Darwin (down by 0.2 cents to 127.9 c/l), Canberra (down by 0.9 cents to 141.9 c/l) and Hobart (down by 1.1 cents to 140.8 c/l).
  • Today, the national average wholesale (terminal gate) unleaded petrol price stands at 117.7 cents a litre, up by 2.0 cents over the week. The terminal gate diesel price stands at 129.7 cents a litre, up by 0.8 cents over the past week.
  • The national average diesel petrol price rose by 0.2 cents to 143.0 cents a litre over the week. The metropolitan price rose by 0.4 cents to 142.1 cents a litre with the regional price up by 0.1 cents to 143.8 cents a litre.
  • Last week, the key Singapore gasoline price rose by US$1.20 or 2.0 per cent to US$62.30 a barrel. In Australian dollar terms, the Singapore gasoline price rose by $3.66 or 4.3 per cent last week to $88.04 a barrel or 55.37 cents a litre.
  • MotorMouth records the following average retail prices for capital cities today: Sydney 120.9c; Melbourne 120.3c; Brisbane 120.9c; Adelaide 132.2c; Perth 116.4c; Canberra 141.8c; Darwin 127.9c; Hobart 139.6c.

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?

  • Unleaded petrol prices are settling into a range of 120-130 cents a litre. Current pricing shouldn’t serve as a constraint on consumer spending. The easing phases of petrol discounting cycles are nearing an end in Melbourne and Brisbane (22 days) and Sydney (14 days) but Adelaide is in the new phase of a discounting cycle – prices peaked last Tuesday.
  • CommSec expects interest rates to be unchanged for the foreseeable future.

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