
Most read
‘Optimistic borrowers’ could endanger housing market, RBA says...
‘Optimistic borrowers’ could endanger housing market, RBA says...

Latest Podcast
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...

Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
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
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

Commodity
Should you invest in gold or bitcoin?
With massive stimulus packages around the world leading to rising inflation expectations, investors are increasingly turning to stores of wealth, with Australians preferring digital assets to gold, ne...Read more

Commodity
Australians protest ‘nonsensical’ gas-led recovery
Advocates for climate action have marched in Canberra, demanding that the government remove its plan for a fossil fuel-dependent economic recovery. ...Read more

Commodity
2021 to kick off 3-year-long investor heaven, property investors predict
Property investors unanimously agree that 2021 will kick off a three-year favourable investor environment with strong price growth. ...Read more

Commodity
Joining the buyers club: How to build a hefty passive income in your 20s or 70s?
“2021 is going to be the year of low stock levels, low interest rates, increased confidence and the chase for yield as people look to replace their incomes.” ...Read more

Commodity
How this investor entered the market 4 years after the last boom
Although he looked to capitalise on Sydney’s property boom a decade ago, luck would have it that Rizul Makkar would only begin to build his property portfolio four years later. ...Read more

Commodity
Electricity price hikes are coming, expert warns
The opening of Santos’ Narrabri gas pipeline will likely see consumers pay a higher price for gas, an expert has said. ...Read more

Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now

Raging floods, the tech stock bubble and the ongoing SG debate
Listen now

Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now

The continued property boom, ethical investing and engaging with your super fund
Listen now

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

Commodity
Should you invest in gold or bitcoin?
With massive stimulus packages around the world leading to rising inflation expectations, investors are increasingly turning to stores of wealth, with Australians preferring digital assets to gold, ne...Read more

Commodity
Australians protest ‘nonsensical’ gas-led recovery
Advocates for climate action have marched in Canberra, demanding that the government remove its plan for a fossil fuel-dependent economic recovery. ...Read more

Commodity
2021 to kick off 3-year-long investor heaven, property investors predict
Property investors unanimously agree that 2021 will kick off a three-year favourable investor environment with strong price growth. ...Read more

Commodity
Joining the buyers club: How to build a hefty passive income in your 20s or 70s?
“2021 is going to be the year of low stock levels, low interest rates, increased confidence and the chase for yield as people look to replace their incomes.” ...Read more

Commodity
How this investor entered the market 4 years after the last boom
Although he looked to capitalise on Sydney’s property boom a decade ago, luck would have it that Rizul Makkar would only begin to build his property portfolio four years later. ...Read more

Commodity
Electricity price hikes are coming, expert warns
The opening of Santos’ Narrabri gas pipeline will likely see consumers pay a higher price for gas, an expert has said. ...Read more