30th May 2022 (summary)
* The most recent price cycle in Sydney lasted 20 days, 27 days less than the preceding cycle. The current pricing cycle is on its tenth day. In Sydney, the current average price of regular unleaded gasoline is 203.1 cents per litre (Monday afternoon).
* The most costly day of the current cycle is Saturday, May 21st, when standard unleaded gasoline costs 207.8 cents per litre. E10, Premium 95, and Premium 98 had the highest per-litre pricing of 206.4, 224.5, and 230.1 cents, respectively.
What is the source of Sydney’s high petrol prices?
According to the ABS, fuel costs grew more last year than in any year since 1990.
Petrol prices have continued to rise since then, owing to growing global fuel prices and Russia’s invasion of Ukraine.
According to the NSW government’s Fuel Check portal, the average price of unleaded has been more than $2 per litre since March 11.
Ms Matanale, a 42-year-old from Wahroonga on Sydney’s upper north shore, is debating whether journeys in her fuel-efficient Mazda 2 are worthwhile.
She claims she buys gasoline in $25 increments to ensure she has enough money at the end of the month.
“It’s truly a ‘let’s reconsider what we’re going to do’ situation because no one wants to travel somewhere with a full tank of gas and then fill it up when they get back.”
“I’m just going to leave the automobile in the parking lot since driving it anywhere is too pricey.”
The NRMA attributes the rise in costs to two factors: increased demand that hasn’t been met by supply as a result of the pandemic, and sanctions imposed on Russia, the world’s second-largest oil exporter, in reaction to its invasion of Ukraine.
“We haven’t seen anything like this in recent history,” said Peter Khoury, NRMA’s head of media.
In Australia, which state has the cheapest fuel?
For each Australian capital city, click through to discover current and long-term retail fuel pricing histories for all fuel types.
- $1.96 in Sydney (NSW).
- $1.91 in Melbourne (Victoria).
- $1.95 in Brisbane (QLD).
- $2.06 in Perth (WA).
- $1.87 in Adelaide (SA).
- $2.00 in Canberra (ACT).
- $2.01 in Hobart (TAS).
- $1.99 for Darwin (NT).
What is the source of Australia’s high fuel prices?
Fuel prices may be split down into three categories: 50% is importation costs, 30%-40% is taxes (although they will be significantly lower in the coming months), and the rest is what shops have left to compete with.
Petrol v diesel
Petrol, often known as gasoline, is Australia’s most widely utilized fuel, accounting for 72 percent of all road vehicles. Diesel is the second most popular fuel, accounting for 26% of all vehicles on the road.
The majority of passenger cars
Most small vehicles, such as cars, motorcycles, and utes, operate on gasoline, but most large vehicles, including as buses, vans, and large commercial trucks, run on diesel. Diesel is also used by 85 percent of farming equipment.
The cost of taxes
The government receives a portion of what motorists spend at the pump in the form of two taxes: fuel excise and goods and services tax (GST).
Fuel excise is a one-time payment to the federal government. The typical rate for fuel and diesel is 44.2 cents per litre, however it will be reduced to 22.1 cents per litre from 30 March to 28 September 2022, which is half the usual rate.
To provide temporary respite for motorists, Treasurer Josh Frydenberg announced these tax cuts as part of the 2022-23 budget.
On a daily basis, Australia consumes roughly 1 million barrels of gasoline and diesel, or about 160 million litres.
These taxes, when added together, account for a part of the total fuel price. In general, the lower the percentage of the price of fuel that is taxed, the higher the price of fuel. A price of $1.40 per litre of gasoline or diesel would be subject to 24.9 percent tax, whereas a price of $2.10 would be subject to only 19.6 percent tax.
These rates should rebound to around 30-40% of overall pricing once the excise reduction expire in September. However, since fuel prices, particularly gasoline prices, fluctuate, these percentages will certainly change.
The oil supply chain
On a daily basis, Australia consumes roughly 1 million barrels of gasoline and diesel, or about 160 million litres. A sophisticated international supply system brings this fuel to Australian gas stations.
The international price, or the price at which Australian wholesalers buy petrol on the international market, accounts for 50% of what motorists pay at the pump.
The top petrol suppliers in Australia are Singapore, South Korea, Japan, and Malaysia. Singapore and South Korea supply the majority of our diesel. Singapore’s supply, on the other hand, has drastically decreased. In 2022, their diesel will arrive in California.
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These countries buy crude oil primarily from the Middle East and Gulf countries, but also from the United States, Brazil, and sections of Africa, and refine it into fuels.
Certain fuel prices are used by oil market analysts as benchmarks for the going rate of such fuels on the international market. For fuel and diesel, Australia utilizes Singaporean benchmarks as a guide to the price at which our wholesalers acquire these items in bulk. Because international prices account for 50% of the retail cost of gasoline and diesel, a change in benchmark pricing is frequently seen at the pump.
More over 80% of Australia’s gasoline and diesel is imported, with the remainder processed locally. Even Australian refining, however, is tightly linked to the global supply chain.
Over the last two decades, Australian refineries have struggled to compete with Asia-Pacific operations that are newer. These larger, more advanced refineries can generate petroleum at a lower cost than their Australian counterparts, whose numbers have progressively decreased.
This shift in production has had an impact on Australian crude oil: more than 214,000 barrels per day are exported to overseas refineries, out of a total of 280,000 barrels produced daily. Every day, we import roughly 360,000 people.
Only two refineries remain in operation in Australia: Viva Energy’s plant in Geelong and Ampol’s plant in Brisbane, both owned by Australians. Both of these plants are over 50 years old and rely on imports for the majority of their crude oil.
War! What is it good for? Oil prices
Due to Australia’s strong reliance on imported gasoline, it is extremely exposed to unpredictable worldwide fuel markets. The Russian invasion of Ukraine caused a spike in fuel costs in the first four months of 2022, demonstrating this.
Protesters in Germany set fire to themselves in protest of Russian military aggression in Ukraine… penalties against Russian oil have pushed up gas prices.
After the United States and Saudi Arabia, Russia produces 11% of the world’s oil, making it the third largest producer.
All Russian oil, coal, and gas have been sanctioned by the United States and Canada. However, some Russian diesel continues to pass into US ports. Because the global oil market is so intertwined, the supply shortage has pushed up crude oil prices all across the world, including in Asia Pacific. As a result, the price of gasoline and diesel has increased.
If the European Union imposed sanctions on Russian oil, things would get a lot worse, but don’t hold your breath. Europe imports more than half of Russia’s crude oil, yet this reliance implies that shutting off the flow would be disastrous for the EU.
Building new Australian refineries is no longer possible, but there are other choices.
Refineries in Australia have also stated that they will no longer purchase Russian crude oil. However, this will have a minor impact on retail prices in the United States.
Traders frequently buy speculatively, i.e., guessing what oil prices will be in a few months.
They’ve been stockpiling crude oil and fuel at inflated prices in the hopes of selling at a profit in the coming months if the sanctions are extended. Others, on the other hand, are shorting oil or betting on its decline.
As a result, the international price of crude oil, gasoline, and diesel has risen, pushing up retail costs.
Fuel wholesalers and retailers
The remaining fuel expenses, after taxes and foreign pricing, cover transportation, storage, marketing, and profit margins.
Fuel stops: Profit margins are thin for fuel sellers, who make more money selling food and beverages.
The amount of money spent on each of these by gas stations or retailers varies greatly. Many stores are controlled by firms that purchase petroleum on the global market. Others are completely self-sufficient, purchasing their fuel from Australian wholesalers. Contractors or franchisees fall between between these two types, operating with varying degrees of independence while paying to use a well-known brand name.
Fuel retailers have generally low profit margins. Service stations frequently associate with convenience stores because they make more money selling food and drinks than they do selling fuel.
In competitive, high-traffic locations, profit margins are very tight. In major cities, this results in a phenomena known as petrol price cycles, in which competing shops steadily lower fuel costs over days to weeks before raising them again.
Looking to the future
If the crisis in Ukraine continues, I believe oil prices will remain quite high, making everything from filling up your car to buying groceries very uncomfortable. Not to mention the ever-increasing cost of airline tickets.
Improving our long-term energy security is the most effective approach to keep these costs low in the future.
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Right now, the greatest thing we can do is improve our fuel storage capacity and keep it in key areas for at least a couple of months. Consumers would profit the most from unleaded gasoline reserves, while civil aviation and the military would benefit from diesel and jet fuel storage.
For example, the Indian corporation Reliance Industries has pledged to sell diesel to Australia. However, because they are also delivering enough to Europe, which is experiencing a diesel shortage, this could only be temporary. We must continue to hunt for more permanent supply arrangements.
Dr. Lurion De Mello (pictured) is a Senior Lecturer at Macquarie Business School’s Department of Applied Finance.
Where can I get the cheapest gasoline in Sydney?
Here is where you can get the cheapest petrol in Sydney.
- E10 129.9 | U91 134.9 | Metro Croydon Park
- Croydon Speedway (E10 129.9 | U91 134.9).
- E10 133.9 | U91 139.9 | Metro Randwick
- E10 139.7 | U91 142.7 | Budget Granville
- E10 139.7 | U91 142.7 | E10 139.7 | E10 139.7 | E10 139.7 | E10 139.7 | E10 139.
- E10 143.9 | U91 146.9 Metro Petroleum St Marys
Is the price of gasoline rising or falling?
According to the Central Energy Fund’s month-end data, gasoline prices are expected to fall somewhat in May, but diesel car owners will face yet another significant increase.
According to the statistics, which represents a snapshot of market conditions as of April 27, 2022, the price of gasoline might drop by 14 to 15 cents per litre in May. Diesel, on the other hand, is under-recovering by roughly 90 cents per litre.
Petrol prices were expected to drop 34 cents per litre by the middle of the month, but diesel prices were expected to rise 67-71 cents per gallon. The key reason for the data’s downward trend is a weaker rand.
The following is a glimpse of the month’s end:
Which country has the most expensive gasoline?
Hong Kong is a city in Hong Kong. Filling up your car in Hong Kong is the most expensive on the planet. The price per litre is $4, which is more than double the international average.
What is the cost of living in Australia in comparison to the United States?
It’s no surprise that Australia remains a popular destination for expats, thanks to its pleasant weather, metropolitan cities, various natural landscapes, and laid-back lifestyle.
But how much does it cost? Australia now has the world’s 12th highest cost of living, with the United States and the United Kingdom trailing well behind at 21st and 23rd position, respectively. Australia’s overall cost of living is 9% more than the United States, but 10% less than London.
While life in Australia is not cheap, according to Mercer’s latest Cost of Living Survey, Australian cities have fallen in the rankings, which is excellent news for firms shifting personnel to the Asia Pacific region. Sydney, the most costly city in Australia, ranks 42 on the Cost of Living Index.
Australia is more tempting than ever, with expatriate centers like Hong Kong, Singapore, and Tokyo all ranking in the top 10.
Where to live in Australia
For expats coming to Australia, Sydney and Melbourne are popular possibilities (although where you end up is entirely up to you!).
Sydney received flawless marks for healthcare, education, and infrastructure from the Economist Intelligence Unit, placing it sixth on a list of the world’s most livable cities. Sydney is known for its pleasant weather, attractive beaches, and active lifestyle. Melbourne is a multicultural city with a vibrant food and arts scene.
For many people, Brisbane, Adelaide, and Perth, as well as regional and coastal towns with reduced living costs, are enticing possibilities.
Which country has the most affordable gas?
Everyone in the American transportation industry is feeling it as the price of diesel and regular gasoline continues to rise every week. But, in comparison to other countries, how inexpensive is our gas? You might be surprised to see how expensive driving is in certain nations and how inexpensive it is in others.
According to Global Petrol Costs, the top ten countries with the cheapest gas prices are:
Venezuela, despite being a poor country overall, is rich in oil deposits and fossil fuels, and exploits this riches to provide nearly free gasoline to its citizens. Yes, it’s strange to consider, isn’t it? However, this is correct. Technically, the price per gallon at Venezuelan pumps is $ 0.10, implying that filling up a rig would cost pennies. It appears to be a fleet owner’s dream.
Another oil-rich countrythere is certainly a pattern here. The countries with the biggest oil reserves, logically, pay the least. Iranians, who have their own vast oil reserves, charge $0.19 a gallon.
Syria has been engulfed in a bloody civil war for more than a decade. Despite this, and its impact on oil production, the country ranks fourth in the world with a $1.20 per gallon gasoline price.
Algeria is ranked #5 in the world for cheap gas, despite paying more than ten times as much as its western neighbor, Libya. In Algeria, a gallon of gas costs $1.22.
The United States… #72
The average gas price in the United States is $4.46 a gallon. And, while Americans rank 72nd in terms of absolute prices, when you consider our country’s high income levels and wealth in relation to this price, the United States ranks fourth in the world for gasoline affordability (that is, one gallon of gas costs only a tiny fraction of our average daily income).
And, in case you weren’t aware, the most costly petrol rates are found in Europe, with Italy, the Netherlands, and Norway all charging more than $8.00 per gallon.
For fleet owners, rising fuel prices can be a challenge. So, why not look for more ways to be as cost-effective as possible?
Consider Did you know that, in addition to money, factoring businesses offer gasoline cards to trucking companies? Consider factoring for trucking invoices. Learn how collaborating with a factoring firm can help you save money on your fuel expenditures.
What is the source of Australia’s high diesel prices?
In 1939, Winston Churchill famously described Russia as a succession of layers: a mystery wrapped in a riddle, inside an enigma. It reminds me of a matryoshka doll. A tight crude market, wrapped around an even scarcer oil feedstock market, enclosing a diesel market in crisis mode, is a bit like the oil market of 2022.
Benchmarks for oil The financial markets are usually drawn to Brent and West Texas Intermediate. Households and companies, on the other hand, do not buy crude; instead, they buy refined petroleum products like diesel and petrol. There isn’t much diesel available right now.
That is a major issue. Diesel is the world economy’s workhorse. Trucks and vans, excavators and heavy gear, freight trains and ships are all kept busy by it. Last week, wholesale and retail diesel prices reached an all-time high, exceeding the previous high established in 2008.
For the first time in history, average retail prices in the United States have surpassed $US5 per gallon (about $1.80 per litre in Australian dollars). It’s selling for more than $1.70 ($3.10) a litre in the United Kingdom. Diesel prices in Australia have risen to well over $2 per litre. The increase is significant due to the widespread usage of diesel in modern society. The price increase, as transportation fuel, will affect everyone, adding to inflationary pressures that are already at multi-decade highs. More than the price of oil, central banks should be concerned about rising diesel prices.