Around this time of the year Australian motorists have always been slugged with petrol price increases, more so this year than any other. The industry also predicts that prices are set to go higher before the school year kicks in.
Figures from the Australian Institute of Petroleum show the national average price of unleaded petrol rose 6 cents to 158.1 cents a litre in the week to January 5, 2014. The price hike, according to fuel company spokespeople, is due to a combination of rising gasoline prices in Singapore, which is $US119.20 a barrel (as compared to West Texas Crude at around US$92 a barrel), and the depreciation of the Australian dollar, which has made imports more expensive.
Wholesale prices at the terminal gate are 148.3 cents a litre, up 14 cents over just the past two months and up 2 cents over the past week. However, the discounting cycle in most capital cities should hit its low point later this week before the price rises again next week.
This week the US price at the bowser was $3.29 per US gallon (4 litres) which is equivalent to an exchange rate adjusted .88 cents Australian per litre. A year ago in January 2013 the Australian price per litre was $1.41, while the American gallon was $3.26 or roughly .77 cents Australian per litre on the adjusted exchange. So, why is petrol double the price in Australia? Simple – consecutive federal governments continuously ‘invent’ reasons to rip-off motorists with high taxes, something the American people would not tolerate.