Invest
Are Aussies paying too much at the pump?
Fuel prices are falling dramatically due to a Russian and Saudi Arabian oversupply and a lack of demand from consumers who are self-isolating, leading to a better deal for Australian consumers.
Are Aussies paying too much at the pump?
Fuel prices are falling dramatically due to a Russian and Saudi Arabian oversupply and a lack of demand from consumers who are self-isolating, leading to a better deal for Australian consumers.
Across the country, Australia’s fuel prices have fallen to levels not seen since the Sydney Olympics, with motorists paying 11 cents a litre less for fuel in March.
Abigail Koch, household savings expert at comparethemarket.com.au, said: “Our analysis shows that petrol prices across the country have been falling, which is good news for motorists who are looking to save some cash during this unpredictable time.
“Canberra had the most expensive fuel in the country, with a quarterly average of 143cpl, while Perth motorists once again paid the least over the quarter, at 132cpl,” she explained.
State Street Global Markets (SSGM) predicts the good times could continue for motorists as it can’t rule out oil prices below US$10 a barrel as demand drops by more than 20 million barrels per day.
“As we look at pictures of empty streets in London, New York and other major cities around the world, it is clear 2020 is going to see far fewer miles driven,” said Ben Jones, multi-asset class strategist at SSGM.
How does Australia stack up?
nestegg has analysed data from global petrol prices around the world to see if Australian consumers are really paying too much for fuel.
While countries’ exchange rates play a pivotal role in prices, Australia is roughly in the middle when it comes to fuel costs.
Despite this, as major fuel companies continue to pump oil, the cost of Australia’s fuel should continue to fall.
“From 1 April, Saudi Aramco will open the taps and produce 12 million barrels of oil a day, up from an average of 10 million. From a budget perspective, Saudi Arabia will need oil prices of around $87 to breakeven, whereas Russia needs oil at just $42. There is no sign that Saudi Arabia and Russia will return to the negotiating table any time soon, so we expect little softening in either’s stance.”
US shale may be able to sell to the US Strategic Petroleum Reserve at relatively high prices, but with supply now exceeding demand by more than 20 million barrels a day, those stores could fill within three to four months.
“Storage is profitable at the moment, as the futures market has moved into ‘super contango’. However, oil has had its worst quarter ever in dollar terms, but single-digit oil is still a possibility,” Mr Jones said.
About the author
About the author
Commodity
Morrison’s gas-led recovery sees manufacturers ‘held to ransom’ by gas cartel
Australia’s manufacturing sector and its workers are being ‘held to ransom’ by the gas cartel, despite the Morrison government promising cheap gas as a key policy in the COVID-19 recovery plan. ...Read more
Commodity
‘Investors should take note’: Gas-led recovery to lead to stranded assets
Australia’s gas-led economic recovery could be relying on inaccurate financial assumptions, new research has revealed. ...Read more
Commodity
Credibility up in flames as government opens 21 new gas and oil exploration sites
Climate groups are saying the Morrison government lacks any credibility when it comes to climate change after it announced 21 new gas and oil exploration areas. ...Read more
Commodity
Morrison urged to drop gas-led recovery after new global warning
The International Energy Agency has found that countries like Australia need to transition their energy grid within 14 years to reach net zero, defying Prime Minister Scott Morrison’s gas-led econom...Read more
Commodity
Taxpayers to bear brunt of Morrison’s $2bn pledge to oil refineries
Taxpayers are set to be on the hook for up to $2 billion over the next decade as the government commits to protecting two oil refineries. ...Read more
Commodity
Government unveils $1bn energy deal
The Morrison government has announced a $1.1 billion energy and emissions agreement between the federal and South Australian state government. ...Read more
Commodity
Australia can get rid of coal without prices skyrocketing
Australia’s transition to renewable energy is unlikely to create unaffordable electricity prices or come at the risk to reliability, with policymakers urged to generate the majority of power from re...Read more
Commodity
Retail clients will no longer dabble in binary options following ASIC ban
ASIC is cracking down on binary options by banning their sale to retail clients as of 3 May, after trading in this financial product cost retail clients an estimated net $490 million in 2018. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Commodity
Morrison’s gas-led recovery sees manufacturers ‘held to ransom’ by gas cartel
Australia’s manufacturing sector and its workers are being ‘held to ransom’ by the gas cartel, despite the Morrison government promising cheap gas as a key policy in the COVID-19 recovery plan. ...Read more
Commodity
‘Investors should take note’: Gas-led recovery to lead to stranded assets
Australia’s gas-led economic recovery could be relying on inaccurate financial assumptions, new research has revealed. ...Read more
Commodity
Credibility up in flames as government opens 21 new gas and oil exploration sites
Climate groups are saying the Morrison government lacks any credibility when it comes to climate change after it announced 21 new gas and oil exploration areas. ...Read more
Commodity
Morrison urged to drop gas-led recovery after new global warning
The International Energy Agency has found that countries like Australia need to transition their energy grid within 14 years to reach net zero, defying Prime Minister Scott Morrison’s gas-led econom...Read more
Commodity
Taxpayers to bear brunt of Morrison’s $2bn pledge to oil refineries
Taxpayers are set to be on the hook for up to $2 billion over the next decade as the government commits to protecting two oil refineries. ...Read more
Commodity
Government unveils $1bn energy deal
The Morrison government has announced a $1.1 billion energy and emissions agreement between the federal and South Australian state government. ...Read more
Commodity
Australia can get rid of coal without prices skyrocketing
Australia’s transition to renewable energy is unlikely to create unaffordable electricity prices or come at the risk to reliability, with policymakers urged to generate the majority of power from re...Read more
Commodity
Retail clients will no longer dabble in binary options following ASIC ban
ASIC is cracking down on binary options by banning their sale to retail clients as of 3 May, after trading in this financial product cost retail clients an estimated net $490 million in 2018. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
