14 March 2016

Global oil prices have surged in the past week. In fact the almost 14 per cent lift in the Singapore unleaded price was the strongest gain in over a year. Even the heavy lifting Australian dollar has not managed to buffer the price gains. In Australian dollar terms prices the Singapore unleaded price lifted by almost 12 per cent. Importantly while petrol prices will lift from recent seven year lows they remains relatively depressed, providing households and businesses with additional spending power.

In addition the discounting cycle continues to pay dividends for motorists – provided you are filling up at the cheap end of the cycle. More capital cities are experiencing petrol below $1 a litre. But the key is to keep an eye on the discounting cycle. In Sydney and Adelaide, prices are holding between 94-98c; Perth 104c; while in Melbourne and Brisbane prices are around $1.15-$1.20 a litre. Clearly filling up at the cheaper days of the cycle can yield motorists substantial savings.

Extracted in full from Macrobusiness.