According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 2.6 cents a litre to 146.1 c/l in the week to December 1.
Today, the national average wholesale (terminal gate) unleaded petrol price stands at a 10-week high of 141.3 c/l, up 2.6 cents a litre over the week after a rise of 2.3 cents in the previous week.
Last week the key Singapore unleaded petrol price fell by US$1.10 (0.9 per cent) to US$116.60 a barrel. But in Australian dollar terms the Singapore gasoline price rose by 6 cents last week to $128.32 a barrel or 80.70 cents a litre – a 12-week high.
Motorists in many capital cities have been enjoying purchasing petrol below cost price. But all good things come to an end. Discounting cycles have finished and wholesale prices have lifted around 5 cents a litre over the past fortnight. The main culprit is a weaker Aussie dollar, although regional gasoline prices are also up around US$4-5 a barrel from the early November lows. Australian pump prices are set to lift from the lows, keeping consumers cautious about spending in the lead up to Christmas. Discounting by retailers is likely to return.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
