Save
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think.
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think.
Sydneysiders’ fuel woes may be more complicated than initially thought.
The ACCC’s latest petrol monitoring report has suggested that average retail petrol prices are actually at their lowest point in 22 years if adjusted for inflation.
As per the report, which looks at Australian petrol prices in the 2020–21 financial year and the June quarter 2021, the average retail price seen across Sydney, Melbourne, Brisbane, Adelaide and Perth for 2020–21 was 129.7 cents per litre (cpl).
To Australian customers paying at the pump, those prices might seem high. However, according to the ACCC, once adjusted for inflation, you have to go as far back as 1998 to find a year when average retail prices were lower.
“Low average petrol prices in the last financial year have come after prices reached record lows around the onset of the COVID-19 pandemic,” ACCC chair Rod Sims said.
Despite this, many are still unhappy that fuel prices have risen to some of their highest levels since January 2020.
The NRMA reported that average prices for regular unleaded reached highs of 164.7 cpl in Sydney in July.
The conflicting information presented here means that, depending on whether you account for inflation, petrol prices in Australia have either been experiencing record highs or record lows.
While recent rises in the price of petrol weren’t covered in the report, the regulator did highlight the beginning of a price hike in the June quarter. The ACCC found that the average price of petrol in Australia’s five largest cities was 42.0 cpl, which puts it 8.6 cpl higher than what was recorded in the March quarter 2021.
Both the ACCC and NRMA attributed the rise to Organisation of the Petroleum Exporting Countries (OPEC) agreements to cut production taking further hold in Australia.
“The production cuts agreed to by the OPEC cartel over the last 18 months have contributed to higher international crude oil and refined petrol prices in the first half of 2021,” Mr Sims said.
Oil reached a six-week high overnight on Monday, trading at over US$70 a barrel.
“OPEC are predicting stronger demand,” NAB podcast host Phil Dobbie said in the bank’s Tuesday morning call, while also highlighting a “double whammy” for oil prices as supply faced interruption, curbing efforts to meet this.
According to Mr Dobbie, OPEC has also seen disruption in supplies from other players, including Mexico.
“Production was hit hard by Hurricane Ida as well, and a lot of that production still isn’t back online just yet,” he said.
NRMA spokesperson Peter Khoury stated that if fuel prices continue in their current trajectory, Sydney regular unleaded could jump to 170 cpl, its highest average fuel price in over a decade.
Even if adjusted for inflation, this will be unwelcome news for Sydneysiders.
“These high prices are hitting our essential workers the hardest, as they are still travelling to work every day, along with families going out to get groceries. These high prices are hurting at a time when the community needs relief the most,” Mr Khoury said.
RELATED ARTICLES
Expenses
Expert tips to secure your financial safety net
New Zealanders are known for their "she'll be right" attitude, but when it comes to handling unexpected bills, being prepared is crucial. Read more
Expenses
Australians continue to opt for free VPNs, ignoring potential privacy risks
Australians, alongside citizens of Sweden, South Korea, and Mexico, are increasingly choosing to use free Virtual Private Networks (VPNs), despite the potential threats to their privacy. Read more
Expenses
Rooftop solar in childcare centres could cut energy bills by millions
The analysis conducted by Parents for Climate has revealed that the installation of rooftop solar and batteries in early childhood education and care (ECEC) centres could lead to savings of up to $130 ...Read more
Expenses
Corporate Traveller identifies key strategies for business travel savings
Flight Centre Travel Group's Corporate Traveller, a premier service provider for managing SME travel, has shared several effective strategies that enabled their business clients to significantly ...Read more
Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. Read more
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. Read more
Expenses
Expert tips to secure your financial safety net
New Zealanders are known for their "she'll be right" attitude, but when it comes to handling unexpected bills, being prepared is crucial. Read more
Expenses
Australians continue to opt for free VPNs, ignoring potential privacy risks
Australians, alongside citizens of Sweden, South Korea, and Mexico, are increasingly choosing to use free Virtual Private Networks (VPNs), despite the potential threats to their privacy. Read more
Expenses
Rooftop solar in childcare centres could cut energy bills by millions
The analysis conducted by Parents for Climate has revealed that the installation of rooftop solar and batteries in early childhood education and care (ECEC) centres could lead to savings of up to $130 ...Read more
Expenses
Corporate Traveller identifies key strategies for business travel savings
Flight Centre Travel Group's Corporate Traveller, a premier service provider for managing SME travel, has shared several effective strategies that enabled their business clients to significantly ...Read more
Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. Read more
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Australian Wealth Management Awards
- Australian Wealth Management Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Commerical Finance Awards
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Fund Manager of the Year Awards
- ifa Excellence Awards
- Lawyers Weekly 30 Under 30 Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- SMSF Technical Strategy Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.