From CommSec:
According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 1.2 cents to 134.0 cents a litre in the past week.
The terminal gate (wholesale) petrol price stands at 117.8 cents a litre. Assuming a gross retail margin of 10 cents a litre, the pump price is likely to hold near 130 cents a litre. Sydney, Adelaide and Perth motorists are currently able to fill up near or below “cost” price…
From June to December last year, petrol averaged around $1.20 a litre. Following the decision by OPEC oil nations to trim production, the new ‘normal’ for petrol is around $1.30-$1.35 a litre. The change has added around $18 to the monthly spending for Australian households. So provided OPEC nations maintain the discipline on
production cuts, the extra amount spent on petrol will certainly add up over time for families.
The lift in petrol prices means that motorists will increasingly need to shop around for the best petrol deals while at the same time they will increasingly question spending on non-essential purchases like outings to cafés and restaurants. Filling up the car with petrol is the single biggest weekly purchase by many Australian families. And not only will higher petrol prices crimp consumer sentiment and spending levels, they will lift the prices of goods
with a high transport component.
