Fuel prices continue to fall across Australia

Peter Terlato 28 November 2016

petrol pump fuel car

7.5 cents per litre lower than the annual average.

Australian motorists rejoice! The latest report on Australian petrol prices shows a continuing drop in prices at the pump during the last quarter.

The Australian Competition and Consumer Commission's (ACCC) recent quarterly report into the petroleum industry revealed a 3.8 cents per litre (cpl) decrease in petrol prices over the quarter ending September 2016.

Pump prices across the country's five largest cities (Sydney, Melbourne, Brisbane, Adelaide and Perth) fell from 118 cpl in June to 114.2 cpl in September.

The current price is 7.5 cpl lower than the 2015/16 average of 121.7 cpl.

The ACCC attributes the reduction to a tightening in the international refiner margin. This is the difference in cost between the price of refined petrol and that of crude oil.

The current margin is very close to the annual average refiner margin of USD 8 per barrel over the last 20 years, according to the report.

Australian fuel is currently taxed at around 44% of the retail price, significantly lower than in other developed countries.

Average fuel retail prices were 1.3 cpl higher in Brisbane (115.2 cpl) than the other four major cities during the September quarter.

Sydney motorists purchased much more premium unleaded and E10 fuel than drivers in other states as a result of the ongoing ethanol mandate (options to increase the uptake of ethanol blended petrol).

54% of Sydney's total petrol sales in 2014/15 were premium fuel, while the average for other capitals was just 23% during the same period.

The report also found fuel retailers in Darwin have tightened the gap (1.7 cpl) on prices when compared with the five largest Australian cities.

In August, the ACCC revealed that average Aussie petrol prices were at their lowest levels since 2002.

Want to be rewarded for fuelling up your car? Consider a petrol rewards credit card.

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Picture: Shutterstock

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