Oil price has already risen a lot recently, reaching $1.67 per litre and will keep rising in the future while the highest national average over the past six months was 150.0 cents a litre. There are many different reasons, such as the global oil prices rising sharply.
Shell Coles Express raised its unleaded prices by a whopping 30 cents overnight on May 8.
New South Wales and Queensland motorists found that leaving fuel at 167.9 cents a litre – 30 cents more than then the price of unleaded fuel May 8.
Meanwhile, prices in Adelaide hit 165 cents that week, in Melbourne the average price was 158.3 cents, while Sydney – which is in the cheaper part of its price cycle – had an average price of 139.2 cents a litre for unleaded on May 9.
Oil price in Perth and Hobart were going more than 150 cents a litre, while Darwin – which in the past four months has become the nation’s cheapest capital city for petrol – was at 144.9 cents a litre for unleaded.
General manager of price monitoring service fuelTRAC, Geoff Trotter said, ‘It’s a new era all right. We’ve never seen prices go so high so quickly and with record margins.’
NRMA spokesman Peter Khoury said it was a common practice in the fuel industry for prices to rise at the end of a fuel cycle. And the oil price is trending upwards. Fuel cycles are different depending on which part of the country you are in.
According to the NRMA, it was 142.0 cents a litre May 3 in Melbourne. It’s at 156.9 cents a litre in Melbourne on May 9. The average regular unleaded price in Sydney for the current cycle should range between 138 cents per litre and 156 cents per litre.
Petrol prices hit $1.445 a litre in the week leading up to the Easter holidays, rising more than 3.5 cents in just a seven-day period to a 22-week high.
However, Sydney, Melbourne and Brisbane saw pump prices lift by 7 cents to 21 cents a litre in the week before the Easter holidays, according to Commsec analysis.
According to the Australian Institute of Petroleum (AIP), a couple of months ago, unleaded fuel in the capital cities was an average $1.20 a litre.
In a statement, Viva Energy said: “Retail fuel prices in Australia are reflective of market forces that have recently included a sharp increase in oil prices.”
As the rapid rising in oil price, more and more people have different options for transportation. At the same time, Electric cars are very popular throughout the world. In some countries, the government regarded Electric cars as big issue, even setting international organisations and funds for development.
Reason and Influence
US-Iran: supplies decline
Washington also said it would place sanctions on any country that continues to buy Iranian oil after May 2.
U.S. decided to send warships to the Middle East is an ominous sign of a potential escalation in conflict with Iran. U.S. national security adviser John Bolton said that the U.S. was sending a carrier strike group and a bomber task force to the Middle East to send a message to Iran that any attack on U.S. interests would be met with “unrelenting force.”
U.S. officials had expressed confidence that those who have been operating under waivers to buy Iranian oil will be able to find alternative supplies when those waivers expire soon.
U.S. is aiming to cut Iranian oil exports to zero. According to Bank of America Merrill Lynch, after sanctions waivers expired, Iran’s exports and volumes would fall below 500k barrels per day in 2019 and could even reach zero.
At the end of the first week in May, U.S. oil benchmark lost nearly 3 percent.
OPEC: supplies decline
OPEC-Russian production cuts and supply disruptions in Libya, Sudan and Venezuela, have seen crude oil prices lift for six consecutive weeks to be up 40 percent.
China-US: demand decline in Asia
Oil prices fell sharply on May 7 as the China-US trade war continues, sparking fears that global growth will be disappointing.
What should we do
The ACCC suggests that if we understood petrol price cycles better we could pinpoint the best times to buy. These cycles can vary hugely between capital cities and regional areas.
In Sydney, there was 26 days in its recent price cycle, which had lately been shrinking in duration.
Brisbane’s regular cycle was 30 days (which had also recently shortened) while Melbourne was way (quite suddenly) up at 43 days.
Max, one of the customers, said, “It is so helpful for customers to use the Apps to find the best place when we want to get oil. Anyway, we’d better buy enough oil before we start.”
There are several apps that we can use to find an appropriate spot. For example, Motor Mouth is a price monitoring app that receives data from both drivers and the industry. And people can also use a free app Petrol Spy Australia, where users report what petrol stations are charging.
- The Courier Mail
Continue reading “Petrol Price Rising Recently Above $1.67 Per Litre”