Via Motormouth.com.au, here’s a map showing unleaded fuel prices at Sydney service stations early on Monday afternoon. The light green dots represent stations where fuel is between 95c and 99.9c; the dark green spots are for stations with prices below 95c.
Commsec noted in a research note this afternoon that Sydney’s price of petrol last week, at 100.5c a litre, was the lowest in 11 years. Today’s price is recorded as just 95.7c.
Now, it may not last. Commsec’s Sevanth Sebastian notes that just today, the national average wholesale unleaded petrol price lifted off five-month lows, up 1.3 cents a litre to 99.6 cents.
But interestingly Sydney retailers appear to have been selling fuel at below-cost prices over recent days, as this chart shows:
This next chart shows that while the Singapore gasoline price – Australia’s key supplier – ticked up last week, fuel prices have been in a persistent and sustained downtrend. (This is of course driven mainly by the glut of global oil supply; the local prices are driven by refiner and retailer margins.)
Sebastian writes: “In just the past two months, the average motorist is saving around $20 a month on filling up the car with petrol. And if you go back just over 12 months, savings are even more substantial at closer to $40 a month. Filling up the car with petrol is the single largest weekly purchase by most families. And it is clear that families have markedly more spending money than at the same point a year ago.”
Australia’s wage price data is out this week. While Australians haven’t been getting ahead much in nominal terms with their wage packets, the disinflation in fuel is offsetting it.