Weekly petrol prices

Retail petrol: According to the Australian Institute of Petroleum, last week the national average Australian price of unleaded petrol rose by 0.8 cents per litre to a 7-month high of 127.2 cents per litre (week to June 19).

Last week the key Singapore gasoline price fell by US$4.45 or 7.3 per cent to US$56.80 a barrel. And in Australian dollar terms the Singapore gasoline price fell by US$5.73 a barrel (6.9 per cent) to $76.87 a barrel or 48.35 cents a litre – a six week low.

MotorMouth records the following retail prices for capital cities today: Sydney 128.3c; Melbourne 124.0c; Brisbane 123.7c; Adelaide 125.3c; Perth 119.4c; Canberra 129.7c; Darwin 120.6c; Hobart 125c The petrol figures have implications for retailers, especially petrol marketing groups.

What does it all mean?

There certainly has been a lift in volatility when it comes to global oil prices and that is likely to play out in terms of domestic petrol prices. Over the past week the national average pump price drifted higher by just 0.8 cents a litre and is now holding at 7-month highs. However if the recent slide in the Singapore unleaded price is anything to go by, it should result in pump prices drifting lower in a fortnight’s time. The Singapore gasoline price has fallen 4.5 cents a litre in Aussie dollar terms and the wholesale price is more than 3 cents a litre off recent highs.

Last week the key Singapore gasoline price fell by US$4.45 or 7.3 per cent to US$56.80 a barrel. And in Australian dollar terms the Singapore gasoline price fell by US$5.73 a barrel (6.9 per cent) to $76.87 a barrel or 48.35 cents a litre – a six week low.

It will take another couple of weeks for lower crude prices to filter through to pump prices, so the vagaries of the ‘discounting cycle’ in operation across southern and eastern capital cities will continue to be the dominant factor in determing pump prices. In Sydney, prices have been falling for 11 days and in Melbourne and Brisbane prices have been falling for more than a fortnight, with petrol at around $1.24 a litre. Adelaide prices have fallen by 14 cents a litre in the past week.

What do the figures show?

According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol rose by 0.8 cents per litre to a 7-month high of 127.2 cents per litre in the week to June 19. The metropolitan petrol price rose by 0.8 cents to 127.9 cents per litre while the regional price rose by 0.9 cents to 125.8 cents per litre.

The national average Australian price of diesel petrol rose by 0.5 cents to 122.4 cents per litre in the week to June 19. The metropolitan price rose by 0.5 cents to 121.5 c/l, while the regional average price rose by 0.4 cents to 123.1 c/l.

Average unleaded petrol prices across states and territories over the past week were: Sydney (up 5.1 cents to 132.6 c/l), Melbourne (down 4 cents to 125.0 c/l), Brisbane (down 5.7 cents to 127.2 c/l), Adelaide (up 17.8 cents to 131.4 c/l), Perth (up 0.8 cents to 123.8 c/l), Darwin (up by 0.9 cents to 120.4 c/l), Canberra (unchanged at 129.0 c/l) and Hobart (unchanged at 125.5 c/l).

Today the national average wholesale (terminal gate) unleaded petrol price stands at 109.2 cents a litre, down 1.8 cents a litre over the week and at 23-day lows. The terminal gate diesel price stands today at 109.9 cents a litre, down 0.5 cents a litre over the week.

Last week the key Singapore gasoline price fell by US$4.45 or 7.3 per cent to US$56.80 a barrel. And in Australian dollar terms the Singapore gasoline price fell by US$5.73 a barrel (6.9 per cent) to $76.87 a barrel or 48.35 cents a litre – a six week low.

MotorMouth records the following retail prices for capital cities today: Sydney 128.3c; Melbourne 124.0c; Brisbane 123.7c; Adelaide 125.3c; Perth 119.4c; Canberra 129.7c; Darwin 120.6c; Hobart 125c.

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?

Filling up the car with petrol is the single biggest weekly purchase for most families. Over the past year savings being reaped at the petrol bowser have served to boost discretionary spending in areas such as cafes, restaurants and take-away outlets.

However while petrol prices are down on a year ago, they are off the super-low levels of earlier this year, so consumers are probably going to be more careful with purchases with less disposable income available.

CommSec expects the subdued inflation outlook to prompt the Reserve Bank to cut the cash rate once again in August.

Extracted in full from The Bull.

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