National fuel prices for summer projected to be 15 cents higher than 2015

SYDNEY– (December 22, 2016) – Motorists preparing to travel for the Summer Holidays will be sweating on the fuel price cycle to deliver lower prices as the wholesale fuel price starts to climb. According to GasBuddy, petrol prices across Australia are climbing higher as wholesale fuel prices are heading up, coming just at the time when millions of Australians will be hitting the road.

GasBuddy projects the national average fuel price this Holiday Season will be higher than the 2015 average of 110 cents per litre (cpl), but lower than the 10-year average of around 130cpl. Today’s national average price for a litre of unleaded petrol is 126.29cpl, some 16 cents more than the average price during summer last year.

“As the Summer Holiday travel period starts in earnest, motorists are unlikely to see the historic low prices of 2015,” said Nic Moulis, GasBuddy country manager. “In the weeks leading up to Christmas we have seen increases in the oil price and reductions in the US Dollar exchange rate, both of which will act to increase Australian fuel prices in the Christmas week.

“With crude oil prices up 29 percent on this time last year, fuel prices at the board will not be delivering the Christmas bonus motorists would have hoped for. We can blame the Organization of Petroleum Exporting Countries (OPEC) and the US Federal Reserve for fuel prices continuing to rise as they reduce production and increase interest rates respectively.”

Consumers are not planning to change their travel habits, even though prices are up. According to GasBuddy’s Australia 2016 Summer Holiday Travel Survey, 58 percent are planning the same holiday routine as 2015. This means that 70 percent of respondents will be travelling away from home this summer break. Of those traveling this year 57 percent will be on the road for at least 4 hours; 30 per cent of which will be driving 10+ hours.

The survey also found that “running out of fuel” is the second biggest fear when it comes to being on the road for the holidays this year, ranked behind the bane of all holiday motorists, sitting in traffic.

Additionally, travellers are on a mission. Forty-nine percent said they only make stops when absolutely necessary. When they do make stops, fuel prices and location are the top deciding factors, followed by the cleanliness of the service station convenience store.

“Travelers will be journeying long distances again this year. It is evident that consumers are looking to save time and make quick stops that can fulfill all their needs from affordable fuel, to clean restrooms, to good food,” said Moulis. “The newly redesigned GasBuddy app is made to help with this journey. With enhanced search filters and station ratings, travellers will now be able to quickly and easily find what they want right in the palm of their hands.”

Extracted from PRWire