- Petrol (both international refined and average retail) prices are at an eight-year high, according to the ACCC, which cited Russia’s invasion of Ukraine and OPEC’s refusal to boost crude oil production
- The ACCC reports the daily average petrol prices in Sydney, Melbourne, Brisbane, Adelaide and Perth hit 182.4 cents per litre (cpl) in late-February 2022, which was the highest inflation-adjusted (real) level since 2014
- The last time prices in Australia were as high as they were in late-February was in January 2014, when strong international demand, conflicts in the Middle East and Ukraine, and a lower AUD/USD exchange rate pushed real daily average petrol prices to 182.7 cpl
- Quarterly average petrol prices in the five largest cities were 162.8 cpl in the December quarter 2021, an increase of 10.3 cpl from the September quarter 2021 (152.5 cpl)
- Adelaide had the lowest average retail prices of all the capital cities at 157.9 cpl, recording the third consecutive quarter in which Adelaide had the cheapest petrol in the December quarter 2021
Petrol (both international refined and average retail) prices are at an eight-year high, according to the ACCC, which cited Russia’s invasion of Ukraine and OPEC’s refusal to boost crude oil production.
The ACCC has revealed the daily average petrol prices in Sydney, Melbourne, Brisbane, Adelaide and Perth hit 182.4 cents per litre (cpl) in late-February 2022, which was the highest inflation-adjusted (real) level since 2014.
Prices have risen further in the first two weeks of March, hitting over $2 a litre.
The last time prices in Australia were as high as they were in late February was in January 2014, when strong international demand, conflicts in the Middle East and Ukraine, and a lower AUD/USD exchange rate pushed real daily average petrol prices to 182.7 cpl.
“The world was already experiencing high crude oil prices late last year due to the continuing actions of the OPEC and Russia cartel, and the enduring Northern Hemisphere energy crisis,” ACCC Chair Rod Sims said.
“The shocking events in Ukraine have forced crude oil prices even higher, as Russia is a major supplier of oil.
“Retail petrol prices in Australia are largely determined by international refined petrol prices and the Australian/US dollar exchange rate.
“As refined petrol is made from crude oil, movements in the global crude oil price drive the international price of refined petrol”.
The report looks at the December quarter 2021 but provides additional data and analysis up to the end of February 2022 due to large price increases so far this year.
Quarterly average petrol prices in the five largest cities were 162.8 cpl in the December quarter 2021, an increase of 10.3 cpl from the September quarter 2021 (152.5 cpl).
In the December quarter 2021, Mogas 95 and taxes together accounted for 86 per cent of the average price of petrol. The 10.3 cpl jump in average retail petrol prices in the five largest cities between the September and December quarters 2021 was mainly due to more expensive Mogas 95.
“It is tempting to point the finger at petrol retailers when prices are very high, but our data shows that late last year 86 cents of every dollar spent by consumers at the bowser was outside of the retailers’ control,” Mr Sims said.
“We’ll continue to closely monitor the movements in local retail prices to see if they reflect international prices”.
Adelaide had the lowest average retail prices of all the capital cities at 157.9 cpl, recording the third consecutive quarter in which Adelaide had the cheapest petrol in the December quarter 2021.
The report has cited the introduction of the South Australian fuel price scheme in March 2021 having a positive impact on Adelaide prices.
The average price increase to the peak of the city’s price cycle was 24.8 cpl in the nine months after the scheme commenced, compared with an average increase of 34.8 cpl in the nine months prior. At the end of 2021, however, the last three price cycle increases in Adelaide were each above 30 cpl.
“We strongly encourage motorists in all states to use one of the many available apps and websites that provide real-time fuel price information,” Mr Sims said.
“There can be large variation in price between different retailers and different suburbs, and 30 seconds of research before getting in your car can lead to significant savings”.
There was a 21 per cent increase in the volume of petrol purchased from retail sites across Australia between the September and December quarters 2021. This was due to COVID-19 restrictions being eased in some states, particularly New South Wales and Victoria.
The ACCC estimates that petrol prices are going to rise through March 2022.