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Fuel Price Relief on the Horizon.


There is a possibility that the fuel cost will soon fall below $2 a litre. However, diesel prices will remain high despite lower crude oil prices used to manufacture both products.

Petroleum price consultants FuelTrac report that the wholesale price in Singapore is increasing compared to the retail price. That means retailers earn more per litre, especially for diesel.

 

Geoff Trotter, general manager of FuelTrac said “The gap between falling petrol prices and static ones for diesel sees those consumers “significantly disadvantaged” as a retail price gap blows out to near 40 cents a litre.”

“Given that diesel represents some 20 billion litres per annum and is the key fuel in road transport, rail, agriculture, mining and marine, it arguably has the biggest impact on price inflation as it feeds through into a significant percentage of all deliveries in Australia”.

Based on data from the Australian Institute of Petroleum, last week’s average unleaded petroleum price fell by 8 cents to 204.1 cents a litre.

You might be interested in knowing that there is another bit of good news to report if you like to pay less at the bowser. There was a 17.5% drop in the wholesale price per litre. Singapore’s oil prices fell down to a 20-week low of $161.52 a barrel or 101.58 cents a litre last week if converted to Australian dollars. The Singapore price has dropped by 40 Australian cents a litre in the past five weeks.

Fuel prices remain vastly different even around Wyndham regardless of what you use. For example, the unleaded pump price in Tarneit yesterday was near $1.99 a litre whereas in Point Cook petrol was selling for $2.29 a litre.

In March, the government announced a temporary cut in fuel excise – 22 cents a litre for six months – and challenged the Australian Competition and Consumer Commission to implement it, but the temporary cut to fuel excise will not be extended.

A study of prices in capital cities and nearly 200 regional locations reveals many factors that influence what consumers pay: international prices, the US exchange rate, and petrol price cycles.