According to the Australian Institute of Petroleum, the national average Australian price of petrol fell by 2.1 cents per litre to 126.2 cents per litre in the week to October 25 – an 8-month low…
Ongoing concerns about global growth and a supply glut have kept a cap on global oil prices. In fact, domestic pump prices have fallen for nine of the past 11 weeks and are now holding at 8-month lows. In addition the terminal gate (wholesale price) is holding closer to $1.13 in some States, and if it continues to drift towards $1.05 a litre, we may start to see some opportunistic petrol retailers start offering the fabled $1 as a marketing ploy.
Globally the world is well supplied with oil and ongoing concerns about global growth will keep a cap on any upward price pressures. In addition the lift in the Australian dollar will also add to further savings at the pump. The Singapore unleaded price has now fallen by over A$10 in the past three weeks to A$84.41 a barrel – a 9-month low – and this lower price should continue to filter through to pump prices.
Since peaking in early July at around $1.43 a litre pump prices have slide to $1.26 a litre. The decline in world oil prices is a net positive for consumers and businesses across the globe…
Petrol is trading almost 25c a litre lower than a year ago, saving the average household over $28 a month to fill up the car with fuel.
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.
