JavaScript disabled. Please enable JavaScript to use My News, My Clippings, My Comments and user settings.

If you have trouble accessing our login form below, you can go to our login page.

If you have trouble accessing our login form below, you can go to our login page.

Speed and size of petrol price jumps 'concerning': analysis

CommSec advised consumers to make use of fuel discounts as prices were tipped to keep rising.

CommSec advised consumers to make use of fuel discounts as prices were tipped to keep rising. Photo: Jim Rice

Petrol prices have recorded the fastest increase in four years across the nation, and are likely to continue rising, according to a new report.

Canberra motorists avoided the worst price jumps, the fuel price rising 2.2 cents over the past week to an average price of 157.8 cents per litre, according to the weekly petrol prices report released by the Australian Institute of Petroleum.

It was the second-smallest price rise of all the capital cities behind Darwin, as motorists in Melbourne were hit with a price rise of 6.3 cents.

Canberra was the third most expensive capital, with Sydney the cheapest at 148.4 cents, and Darwin the most expensive at 165.6 cents per litre. The average pump price nationally rose by 2.7 cents to 153.5 cents per litre – a five-month high.

Unleaded fuel in Canberra was more than 3 cents a litre more expensive than the NSW regional average, according to the AIP. In the region, the cheapest fuel was to be found in Goulburn, where the average price was 151.3 cents; Queanbeyan and Batemans Bay were also marginally cheaper than the capital, while Yass was slightly more expensive.

Analysis by CommSec predicted further rises over the coming weeks, as the weak Australian dollar lifted the cost of imported fuel while stronger global demand also pushed prices higher.

“Sustained higher global crude prices and a substantially weaker Aussie dollar - pushing up the cost of imported fuel - are likely to see domestic pump prices rise considerably over the next few weeks. The wholesale price has lifted but 23 cents a litre since the lows while the retail price has risen by 16 cents a litre – suggesting that pump prices will continue to play catch-up over the coming weeks,” CommSec said.

“The concern at present is not only the magnitude of the increase in fuel prices but the short time frame in which it has taken place. In fact the 16 cent increase in pump prices over the past two months marks the fastest increase since early 2009.

“A higher petrol price is bad news for retailers, especially those selling non-essential or discretionary items. If retail spending remains soft, the Reserve Bank will be more inclined to cut interest rates.”

CommSec predicted a 3 cent price rise over the next week, and advised motorists to watch service station signboards, and use discounts where available.

20 comments so far

  • Lets see, $6.35 a gallon here, 3.00 a gallon in the UK, 3.34 a gallon in the US. Got to love the difference. So whats the governments doing about ir. not a bloody thing.

    Commenter
    EDU IT
    Date and time
    July 22, 2013, 3:05PM
    • Think you better check your facts.UK prices are over $2 a litre. Even at$1.57 Aus still fairly cheap in the OECD http://www.aip.com.au/pricing/internationalprices.htm

      Commenter
      Martin
      Date and time
      July 22, 2013, 4:50PM
    • Careful.... Rudd may smell a vote or two there....and it will only have to last a few months to after the election, like most of the other hollow policy of recent times.

      Commenter
      Oblivious
      Date and time
      July 22, 2013, 6:07PM
    • I don't know where you get 3.00 for a gallon in the UK. I wish... Its more like Aus$10.50 a gallon base on my fill up today in London @£1.42 a litre.

      Commenter
      UK-Driver
      Location
      London
      Date and time
      July 22, 2013, 6:50PM
    • The parasites in Canberra will never do anything constructive about anything that doesn't affect them personally. Since we supply them with everything, they don't give a rats about what fuel costs the sheeple.

      Commenter
      Yes Minister
      Location
      Woop Woop
      Date and time
      July 23, 2013, 8:15AM
    • don't know where you got 3/gal in the UK from... but you're wrong.

      the average price for unleaded in the UK is £1.37 per litre, or $2.28 AU. that's £5.19 per gallon, or $8.60 AU.

      in fact, your maths seems broken on the Aussie price too. $1.578 x 3.79 (l/gal) is less than $6.

      Commenter
      wookiee
      Date and time
      July 23, 2013, 8:17AM
    • 3.00 a gallon in the UK? Better check your numbers sport. Fuel is more expensive in the UK than here by a fair margin. Currently around AU$2.30 per LITRE in the UK.

      Commenter
      Johnno
      Date and time
      July 23, 2013, 9:04AM
    • Comparing UK prices with ours is comparing cauliflowers and oranges.Even at those prices per gallon the average Brit probably spends less per week on fuel than we do, due to excellent public transport and the fact they haven't got Australia's tyranny of distance.Canberra to Sydney is 279 km by road, a trip many regularly do.How often would your average Londoner travel to say Manchester which is roughly 320km away?

      Commenter
      Michael M
      Date and time
      July 23, 2013, 10:44AM
  • What the heck do we pay ACCC Petrol Price Commissioner Joe Dimasi for? Why haven't the big retailers been told to divest their interest in fuel? Are primary producers and big fuel users like farmers,fishermen and truck operators subsidising the shopper docket scheme?How does the scheme work,the big two aren't exactly well known for benevolence?Another problem solved Mr Rudd?

    Commenter
    Michael M
    Date and time
    July 22, 2013, 3:11PM
    • How does the shopper docket scheme work?

      I'm no expert, but I'm pretty sure it goes something like - buy out all the fuel competition in Canberra, raise petrol prices by 25c a litre, and offer shopper discounts for 10c a litre. No subsidies required here! Even with your discount docket you're getting ripped off. Canberra has for a long time been getting taken for a ride by Coles and Woolworths. It's so blatant I too often wonder how it is allowed. Legalised theft!

      Commenter
      ACT
      Date and time
      July 22, 2013, 4:54PM

More comments

Make a comment

You are logged in as [Logout]

All information entered below may be published.

Error: Please enter your screen name.

Error: Your Screen Name must be less than 255 characters.

Error: Your Location must be less than 255 characters.

Error: Please enter your comment.

Error: Your Message must be less than 300 words.

Post to

You need to have read and accepted the Conditions of Use.

Thank you

Your comment has been submitted for approval.

Comments are moderated and are generally published if they are on-topic and not abusive.

Featured advertisers

Special offers

Credit card, savings and loan rates by Mozo