Weekly Petrol Prices
- Petrol: According to data from the Australian Institute of Petroleum, the national average price of unleaded petrol rose by 4.1 cents in the past week to 134.6 cents a litre. Pump prices in Brisbane are near 4-month highs at $1.50 a litre, according to MotorMouth and Informed Sources.
- Diesel: The national average diesel petrol price rose by 1.0 cent to a 13-week high of 148.3 cents a litre. The metropolitan price rose by 0.9 cents to 147.9 cents a litre with the regional price up by 1.0 cent to 148.6 cents a litre.
The petrol figures have implications for retailers, especially petrol marketing groups.
What does it all mean?
- Petrol discounting cycles came to an abrupt end in Sydney, Melbourne and Brisbane last week. According to MotorMouth and Informed Sources, pump prices are now above $1.50 a litre in the Sunshine State for the first time since early November. Sydney and Melbourne prices, currently $1.35-$1.45 a litre, are likely to catch-up by the end of the week. And diesel prices have hit 13-week highs. Not good news for businesses, motorists or farmers.
- Global oil prices have hit 4-month highs with the US Nymex price up by 29 per cent to US$58.52 a barrel this year due to reduced crude output by major producers. Last week, the Brent crude oil price rose by 2.2 per cent to US$67.16 a barrel with Nymex up by 4.4 per cent.
- OPEC and its allies commenced their meetings in Azerbaijan over the weekend and signalled a renewed commitment to keep oil markets balanced in the second half of 2019. Russia and Iraq announced their continued support for supply cuts until May-June, but will then re-assess their positions due to output uncertainty in Venezuela and Iran. Compliance with oil supply cuts reached 89 per cent in February – a 15-month high.
- The Singapore gasoline price has lifted by almost 18 cents a litre from the end-December lows in Australian dollar terms. And the Australian wholesale (terminal gate) price is also up by around 18 cents a litre from lows to near 130 cents. Australian pump prices have lifted by 15 cents a litre from lows.
What do the figures show?
Petrol prices
- According to the Australian Institute of Petroleum, the national average price of unleaded petrol rose by 4.1 cents to 134.6 cents a litre in the past week.
- The metropolitan petrol price rose by 5.6 cents to 134.2 cents per litre, and the regional price rose by 0.9 cents to 135.3 cents per litre.
- Average unleaded petrol prices across states and territories over the past week were: Sydney (up by 4.6 cents to 130.2 c/l), Melbourne (up by 0.2 cents to 128.5 c/l), Brisbane (up by 11.2 cents to 139.1 c/l), Adelaide (up by 21.2 cents to 146.7 c/l), Perth (up by 2.1 cents to 136.2 c/l), Darwin (up by 7.5 cents to 135.8 c/l), Canberra (up by 0.7 cents to 142.9 c/l) and Hobart (up by 0.5 cents to 141.7 c/l).
- The national average diesel petrol price rose by 1.0 cent to 148.3 cents a litre over the week. The metropolitan price rose by 0.9 cents to 147.9 cents a litre with the regional price up by 1.0 cent to 148.6 cents a litre.
- Today, the national average wholesale (terminal gate) unleaded petrol price stands at 129.7 cents a litre, up by 3.6 cents over the week. The terminal gate diesel price stands at 136.9 cents a litre, little changed over the past week.
- Last week, the key Singapore gasoline price rose by US$3.25 or 4.5 per cent to a 4½-month high of US$75.50 a barrel. In Australian dollar terms, the Singapore gasoline price rose by $3.54 or 3.4 per cent last week to a 4½-month high of $106.62 a barrel or 67.06 cents a litre.
- MotorMouth records the following average retail prices for capital cities today: Sydney 143.1c; Melbourne 134.7c; Brisbane 152.2c; Adelaide 145.5c; Perth 127.9c; Canberra 142.4c; Darwin 139.9c; Hobart 138.5c.
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 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?
- Petrol prices continue to lift, with the national average unleaded pump price hovering near $1.35 a litre. And discounting cycles have ended on the East Coast, pushing up retail bowser prices to $1.35-$1.50 a litre.
- Supply discipline by OPEC+ producers have already helped lift crude oil prices to 4-month highs and additional compliance measures are expected to be announced today in Baku, Azerbaijan, likely boosting global prices. So it’s conceivable that national average unleaded pump price will be around $1.40 a litre by the end of the week.
- Diesel prices have increased back to near $1.50 a litre in regional areas. Not ideal timing for Aussie farmers getting back on their feet following recent fires, floods and drought.
- Aussie households are exhibiting caution when it comes to discretionary spending due to concerns about falling property prices and slowing economic activity. Rising fuel costs are another constraint on household budgets, especially with most Aussies booking-in blocks of annual leave for the upcoming school, Easter and Anzac Day holidays.
- CommSec expects interest rates to be unchanged for the foreseeable future.