Commsec has released a new report today arguing that Australian petrol prices are headed lower following the recent appreciation of the Australian dollar and the resolution of the Syrian crisis:
According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol rose by 5.6 cents a litre to 155.6 c/l in the week to September 15…
[However], the national average wholesale (terminal gate) unleaded petrol price stands at 142.4 c/l, down 4.2 cents a litre over the past seven days. Motorists can expect pump prices to ease with underlying prices to fall 3 cents a litre over the next 7-10 days.
Last week the key Singapore unleaded petrol price fell by US$4.85 (4.0 per cent) to US$116.50 a barrel. And in Australian dollar terms the Singapore gasoline price fell by $6.75 (5.1 per cent) last week to an 11-week low of $126.15 a barrel or 79.3 cents a litre…
The easing of the Syrian crisis and the lifting of the Aussie dollar represent a double whammy benefit for Aussie motorists. There is further good news today with the Aussie dollar gaining around US1 cent following the withdrawal of Larry Summers as a candidate to become the next Federal Reserve chairman…
With the September school holidays coming, and many families likely planning driving holidays, the upcoming fall in petrol prices will be welcome relief.
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.
