Australian motorists have been enjoying super low fuel prices in recent months. To paraphrase the late, great Prince, we've been petrol-partying like it's 1999. Unfortunately, the salad days could be coming to an end. Here's why.
Australian petrol prices recorded the largest drop in eight months last week. The national average Australian price of unleaded petrol fell by 3.4 cents to 126.7 cents a litre in the past week.
However, global crude prices bounced last week and analysts are predicting that Aussie petrol prices could be next.
Speaking with Business Insider, Commsec’s chief economist Craig James explained that the renewed strength in crude prices could see petrol prices climb.
“Last week the key Singapore gasoline price rose by $US3.30, or 5.2%, to US$66.30 a barrel,” James said. “In Australian dollar terms, the Singapore gasoline price rose by $4.04 a barrel, or 4.9%, to $86.73 a barrel."
Tellingly, the average wholesale price for Australian retailers rose by one cent last week to 112.5 cents per litre. As per industry trends, crude and wholesale prices are expected to follow.
James said petrol prices could drop by 2-3 cents a litre in the next fortnight but "this may be as good as it gets for motorists.” Better fill up the tank for school holidays sooner rather than later.
[Via Business Insider]