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15603
Tue, 08/12/2008 - 11:50
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https://www.oananews.org//node/15603
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Petrol price hit by Aussie dollar's drop
SPA - Motorists may not gain the full benefit from the recent slide in world oil prices because of a steep drop in the Australian dollar.
The latest petrol prices report from the Australian Institute of Petroleum (API) shows that the average price of unleaded petrol fell a further 3.4 cents per litre to 150 cents in the past week.
The average price has fallen 13 cents in the last three weeks.
The metropolitan price fell by 3.0 cents per litre to 148.2 cents, while the regional average price fell by 4.2 cents to 153.7 cents.
But Commonwealth Securities economist Savanth Sebastian says the Australian dollar's slump isn't great news for motorists.
"The global oil price may be sliding but the weakness in the Aussie is capping any falls in petrol pump prices," he said.
"The Australian dollar has fallen by almost 10 cents since its highs to around 89 US cents, wiping out 10 cents of potential gains at the pump."
The dollar has been under severe pressure because of a revival in the US currency and speculation the Reserve Bank of Australia (RBA) will cut interest rates next month, making the Aussie less attractive to investors.
However, Australia's benchmark - the Singapore unleaded petrol price - has fallen by a further $US4 per barrel in the past week, which should mean the national average price is likely to moderate to $1.45 a litre in the next fortnight.
Mr Sebastian said the average household now forks out $210 a month on petrol, down almost $18 in the past month.
But, he said, the latest data suggests oil companies continue to drag their heels in cutting prices.
Based on movements in the benchmark price, over the last month petrol should have fallen by about 19 cents a litre, yet the national average petrol price has fallen by just 13 cents.
"There is no doubt that oil companies are cutting fuel prices, however, the lag period for the fall in prices needs to be questioned," Mr Sebastian said.
"The national average price should be much closer to $1.40 a litre by now rather than the $1.50."
The API report shows petrol prices fell in all states last week.
In Sydney, the pump price was down 3.2 cents to 148.2 cents, in Brisbane, it eased 3.0 cents to 141.7 cents and in Melbourne, it was 2.7 cents lower at 150.6.
In Adelaide, the price was down 2.1 cents to 149.3, the Perth price was off 3.0 cents at 146.6 and Darwin was 4.8 cents lower at 163.9.
The Canberra price was down 6.2 cents to 152.0 and in Hobart it was 5.0 cents lower at 156.5.
Late Monday, the federal government confirmed it had asked Treasury for advice in January on how much it would cost taxpayers to cut fuel excise.
Assistant Treasurer Chris Bowen said the Treasury advice had done little to alter his opinion that it was a bad idea to cut fuel excise, which adds 38 cents to a litre of petrol.
"I asked for advice on how much it would cost per cent to cut the excise," he told the Seven Network.
"I thought it was a bad idea before I got the advice, and I thought it was a bad idea after I got the costing."
Opposition Leader Brendan Nelson has indicated he would cut five cents a litre from the price of fuel if he won the next election.
Acting Opposition Leader Julie Bishop accused the government of being highly hypocritical.
"This is becoming a hallmark of the Rudd Labor government," she told the Seven Network.
The latest petrol prices report from the Australian Institute of Petroleum (API) shows that the average price of unleaded petrol fell a further 3.4 cents per litre to 150 cents in the past week.
The average price has fallen 13 cents in the last three weeks.
The metropolitan price fell by 3.0 cents per litre to 148.2 cents, while the regional average price fell by 4.2 cents to 153.7 cents.
But Commonwealth Securities economist Savanth Sebastian says the Australian dollar's slump isn't great news for motorists.
"The global oil price may be sliding but the weakness in the Aussie is capping any falls in petrol pump prices," he said.
"The Australian dollar has fallen by almost 10 cents since its highs to around 89 US cents, wiping out 10 cents of potential gains at the pump."
The dollar has been under severe pressure because of a revival in the US currency and speculation the Reserve Bank of Australia (RBA) will cut interest rates next month, making the Aussie less attractive to investors.
However, Australia's benchmark - the Singapore unleaded petrol price - has fallen by a further $US4 per barrel in the past week, which should mean the national average price is likely to moderate to $1.45 a litre in the next fortnight.
Mr Sebastian said the average household now forks out $210 a month on petrol, down almost $18 in the past month.
But, he said, the latest data suggests oil companies continue to drag their heels in cutting prices.
Based on movements in the benchmark price, over the last month petrol should have fallen by about 19 cents a litre, yet the national average petrol price has fallen by just 13 cents.
"There is no doubt that oil companies are cutting fuel prices, however, the lag period for the fall in prices needs to be questioned," Mr Sebastian said.
"The national average price should be much closer to $1.40 a litre by now rather than the $1.50."
The API report shows petrol prices fell in all states last week.
In Sydney, the pump price was down 3.2 cents to 148.2 cents, in Brisbane, it eased 3.0 cents to 141.7 cents and in Melbourne, it was 2.7 cents lower at 150.6.
In Adelaide, the price was down 2.1 cents to 149.3, the Perth price was off 3.0 cents at 146.6 and Darwin was 4.8 cents lower at 163.9.
The Canberra price was down 6.2 cents to 152.0 and in Hobart it was 5.0 cents lower at 156.5.
Late Monday, the federal government confirmed it had asked Treasury for advice in January on how much it would cost taxpayers to cut fuel excise.
Assistant Treasurer Chris Bowen said the Treasury advice had done little to alter his opinion that it was a bad idea to cut fuel excise, which adds 38 cents to a litre of petrol.
"I asked for advice on how much it would cost per cent to cut the excise," he told the Seven Network.
"I thought it was a bad idea before I got the advice, and I thought it was a bad idea after I got the costing."
Opposition Leader Brendan Nelson has indicated he would cut five cents a litre from the price of fuel if he won the next election.
Acting Opposition Leader Julie Bishop accused the government of being highly hypocritical.
"This is becoming a hallmark of the Rudd Labor government," she told the Seven Network.
