According to the Australian Institute of Petroleum, the national average Australian price of petrol rose by 3.4 cents per litre to 136.9 cents per litre in the week to May 17 – a near six-month high…
Petrol prices recorded a substantial lift in the past week, and given the ongoing strength in global oil prices, it is likely that prices will lift further. Motorists could be forgiven for thinking that the higher Aussie dollar may have provided some relief at the pump. However global oil prices have risen by a larger margin in the past week. In fact the Singapore unleaded price has lifted by over A$15 in the past five weeks – all of which needs to filter through to domestic pump prices…
While the vagaries of the discounting cycle continues to be the key driver of such vast shifts in pump prices across the nation, motorists can still benefit. The discounting cycle provides the best opportunity to purchase fuel at or below the cost (terminal gate) price – and in turn save a few extra dollars. Between the peak and the trough in the cycle motorists could save themselves as much as 20 cents a litre…
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.
