Canberra’s petrol prices have risen slightly, but the national average price has dropped significantly over the past week, as analysts warn conflict in Syria could fuel price rises in the coming months.
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Sydney, Melbourne, and Brisbane all enjoyed big falls in pump prices in the week leading up to Sunday, dropping more than 8 cents per litre in all three cities, and contributed to a national fall of 4.5 cents on average.
Canberra and Adelaide were the only two capital cities to record small increases in the price of unleaded fuel, up 0.1 cents and 0.5 cents per litre respectively.
The small rise in Canberra, taking the average price of unleaded fuel to 157.9 cents per litre, comes after five weeks of a steady 157.8 cents. The ACT’s petrol price has remained stagnant since July 21, despite significant fluctuations in the national average price which, over the same period, has gone from 153 cents per litre to a high of 158 cents, before dropping back down to 149.2 cents per litre this week.
Around the region, petrol remains cheaper in Batemans Bay (156.8 cents per litre), Goulburn (155.5), Gundagai (153.9), Queanbeyan (156.2), and Yass (156.5), but is more expensive in Cooma (162.7) and Tumut (163.9).
Over the coming fortnight, economists at CommSec predict the national average price will rise by 1-2 cents per litre, but warned troubles in the Middle East could impact petrol prices further.
“The national average petrol price recorded a sizeable 4.5 cent fall over the past week, and it was largely driven by two factors - the vagaries of the discounting cycle and the fact that pump prices were playing catch up with the fall in regional oil prices over the past month,” the CommSec analysis said.
“Looking forward, it is likely that fuel prices may lift modestly from here. In fact since peaking just over a month ago the Singapore unleaded fuel price has fallen by over $11.70 a barrel or 7.4 cents a litre in Australian dollar terms, while domestic pump prices have dropped by almost 8 cents a litre.
“The uncertainty and tension in the Middle East could be a key risk to higher global oil prices over the next few months. The main unknown is how the tension in the Middle East, particularly Syria is likely to play out. An escalation in conflict could push up global oil prices and feed through to higher domestic petrol prices in the next couple of months. In the last few days a delay in Libyan oil exports has supported a modest rise in global oil prices. CommSec expects pump prices to rise by around 1-2 cents a litre over the next fortnight.”
The petrol price report on Monday coincided with calls by retail lobby groups to ban ‘shopper docket’ discounts on petrol amid claims it hurts competition in the sector.
The Australian Retailers Association (ARA), Master Grocers Australia, Australian Newsagents and Small Business Australia are calling on Prime Minister Kevin Rudd and Opposition Leader Tony Abbott to commit to ending the petrol shopper docket schemes.
‘‘The fuel dockets offered this year by Woolworths and Coles amount to selling below cost,’’ the group said in an ad.
‘‘We believe this is a misuse of their ever increasing power in each of the fuel and grocery markets. The supermarket chains already sell approximately 80 per cent of groceries and 50 per cent of fuel and liquor in Australia.
‘‘If these fuel dockets continue at these levels, it’s going to be very hard for other players to compete. As a consequence we may end up with just two players in the country selling fuel and groceries. This is not going to be in the interest of consumers.’’
Woolworths and Coles claim shopper dockets bolster family budgets and were popular with customers who valued the savings on fuel.
A report by the consumer watchdog into shopper docket discounts is due to be finalised within the next few months, after a year of deliberations.
with Brian Robins and Eli Greenblat
