Petrol Price in Australia, on the rise !!!!!
Fuel prices are on the rise in Australia, with the average price of Unleaded-91 on 20th August 2023 was AUD 2.06 a liter. This is the highest petrol price in Australia which consumers have to pay since July 2022. With the falling Australian Dollar and increasing cost of crude oil adding fuel to fire. The Australian consumers are the sole sufferers in the conundrum.
For the week ending 20th August 2023, the average price of petrol ULP 91 in Victoria was 211.50 cents. Prices across Australia in other capital cities were also high compared to the same time last year. The Australian average was 204 cents for ULP 91. Overall the maximum price of ULP 91 was reported in Melbourne at 216 cents.
| Capital City | Price of Petrol (Australian Cents) |
|---|---|
| Melbourne | 216 |
| Adelaide | 194 |
| Brisbane | 197 |
| Sydney | 210 |
| Perth | 205 |
Impact of Global Events on Fuel Price
With Russia still raging, war in Ukraine has an ongoing long term impact on the price of all fuel types in western nations. The sanctions on Russian oil are not impacting the Russian fuel exporters, they are indeed raking in more profits with sale of crude oil. Thanks to inflating the cost of shipping. According to financial times analysis, the transportation companies have generated US $ 1 Billion in each quarter.
India is still purchasing Crude Oil from Russia at US $ 60 per barrel, but it is not clear what is the cost of shipping per ship paid by the Indian importers. With a vast number of ships leaving ports from the Russian Baltic region and heading towards Indian ports, the insurance and shipping companies are making huge profits.
The international price of Crude Oil (Western Texas) was 81.62 (as at 21 August 2023). The key factors driving the crude price higher are:
- The US sanctions on Venezuela, Iran and Russia that are driving the prices further.
- OPEC+ countries in their recent meeting announced a reduction in oil production till the end of 2024.
- Falling Australian Dollar against other currencies.
Even with the US producing more oil compared to the same time last year and continuing to increase its oil production to planned 12.61 million bpd this year. The cost will still remain high, as demand surpasses supply.
[…] Rising inflation figures have caused concern, with CPI spiking to 5.2% in August. This unexpected increase in prices has been driven, in part, by soaring fuel prices. Oil prices have risen by 30% since the end of June 2023. The RBA also expressed concerns that high retail petrol prices could continue to fuel inflation and …. […]