Diesel fuel prices start to rise, after eight months of steady decline
Diesel fuel prices across regional and rural areas of Australia started to rise during August and September, after seven months of gradual declines.
Prices in regional areas reached their recent low-point in early August averaging around 126c/l, before climbing over the past six weeks.
As our graph shows, at the start of the year, princes firstly leapt to 131c, before beginning a gradual downwards trend over the next eight months.
The most recent weekly report issued by the Australian Institute of Petroleum for the week ended Sunday September 24 has retail diesel prices in non-metro regional areas of the country averaging 127.3c/l. That’s virtually the same as in our previous diesel report, published in late June.
Global fuel oil supply has been impacted on a number of fronts, including renewed turmoil in the large producing state of Libya, and disrupted flows on the US Gulf coast due to severe weather events – Hurricane Harvey and Hurricane Irma.
For the remainder of 2017, analysts expect demand growth to be stronger than expected, particularly in Europe and the US. Based on recent futures trading, investors’ expectations are that markets are tightening and that fuel prices will rise.
With recent tensions in the Arabian Gulf oil producing region, prices could again start to lift heading into 2018, International Energy Agency commentators suggest.
Diesel remains a major input for many cattle producers in Australia, used for pumping water, generating power, and transporting livestock and inputs.