ID :
16322
Tue, 08/19/2008 - 01:04
Auther :
Shortlink :
https://oananews.org//node/16322
The shortlink copeid
Petrol prices falling at a snail's pace
(AAP) Petrol prices are falling at a snail's pace because of a sharp drop in the dollar and the apparent reluctance of oil companies to pass on the full benefit of lower oil prices.
The latest weekly petrol prices report by the Australian Institute of Petroleum (AIP) released Monday, shows the national average petrol price fell just 1.1 cents a litre to 149.0 cents, while the price in Brisbane actually bucked the trend androse.
The average metropolitan price fell by 0.5 cents per litre to 147.7 cents, while theregional average price fell by 2.1 cents per litre to 151.6 cents.
Commonwealth Securities economist Savanth Sebastian said the weakness in the dollarwas eating into the potential falls in pump prices.
"Had the Aussie remained around 98 cents the national average price would havefallen by a further 14 cents to around $1.35 a litre," Mr Sebastian said.
The dollar was trading at around 87 cents on Monday.
Still, average households should be seeing an extra $20 a month in their budget fromthe fall in petrol prices so far, he said.
But he said while there was no doubt that oil companies were cutting fuel prices,benchmark prices suggested petrol prices should be even lower.
Based on movements in Australia's benchmark price - the Singapore unleaded price - Australian petrol prices could have fallen by up to 24 cents a litre in the lastmonth.
Instead, the wholesale terminal gate price has fallen by 16 cents, while the pumpprice has fallen by only 14 cents since its highs.
"Motorists have every right to ask where did the extra few cents go?" Mr Sebastiansaid.
This apparent discrepancy in prices comes as the federal government struggles to implement its FuelWatch scheme, which its says "empowers" the motorist and givesaccess to cheaper pump prices.
The government needs to win the support of cross-bench senators to have FuelWatchlegislation pass the upper house against coalition opposition.
"It's not as if it's a theory. This has actually been operating in the state of Western Australia for some time, where it has brought considerable benefits tomotorists in that state," Federal Treasurer Wayne Swan told Fairfax Radio.
"We are not debating something that's some theoretical debate. It has actually happened in practice." Mr Swan said it would be helpful to have the support of the five Greens senators, Family First's Steve Fielding and Independent Nick Xenophon, because the oppositionwas intent on backing the oil companies.
"But at the moment Mr Xenophon appears to be wandering all over the place," Mr Swansaid.
The API report shows petrol prices fell in all states in the past week except forBrisbane, where they rose 0.6 cents to 142.3 cents a litre.
In Sydney, petrol prices were down 0.4 cents to 147.8 cents a litre, in Melbourne they were off 0.5 cents to 150.1 cents and in Adelaide they were 0.3 cents lower at149.0 cents.
In Perth they dropped 1.2 cents to 145.3 cents, in Darwin they fell 1.8 cents to 162.0, in Canberra they declined 3.9 cents to 148.2 cents and in Hobart they wereoff 3.6 cents to 152.9 cents.
The latest weekly petrol prices report by the Australian Institute of Petroleum (AIP) released Monday, shows the national average petrol price fell just 1.1 cents a litre to 149.0 cents, while the price in Brisbane actually bucked the trend androse.
The average metropolitan price fell by 0.5 cents per litre to 147.7 cents, while theregional average price fell by 2.1 cents per litre to 151.6 cents.
Commonwealth Securities economist Savanth Sebastian said the weakness in the dollarwas eating into the potential falls in pump prices.
"Had the Aussie remained around 98 cents the national average price would havefallen by a further 14 cents to around $1.35 a litre," Mr Sebastian said.
The dollar was trading at around 87 cents on Monday.
Still, average households should be seeing an extra $20 a month in their budget fromthe fall in petrol prices so far, he said.
But he said while there was no doubt that oil companies were cutting fuel prices,benchmark prices suggested petrol prices should be even lower.
Based on movements in Australia's benchmark price - the Singapore unleaded price - Australian petrol prices could have fallen by up to 24 cents a litre in the lastmonth.
Instead, the wholesale terminal gate price has fallen by 16 cents, while the pumpprice has fallen by only 14 cents since its highs.
"Motorists have every right to ask where did the extra few cents go?" Mr Sebastiansaid.
This apparent discrepancy in prices comes as the federal government struggles to implement its FuelWatch scheme, which its says "empowers" the motorist and givesaccess to cheaper pump prices.
The government needs to win the support of cross-bench senators to have FuelWatchlegislation pass the upper house against coalition opposition.
"It's not as if it's a theory. This has actually been operating in the state of Western Australia for some time, where it has brought considerable benefits tomotorists in that state," Federal Treasurer Wayne Swan told Fairfax Radio.
"We are not debating something that's some theoretical debate. It has actually happened in practice." Mr Swan said it would be helpful to have the support of the five Greens senators, Family First's Steve Fielding and Independent Nick Xenophon, because the oppositionwas intent on backing the oil companies.
"But at the moment Mr Xenophon appears to be wandering all over the place," Mr Swansaid.
The API report shows petrol prices fell in all states in the past week except forBrisbane, where they rose 0.6 cents to 142.3 cents a litre.
In Sydney, petrol prices were down 0.4 cents to 147.8 cents a litre, in Melbourne they were off 0.5 cents to 150.1 cents and in Adelaide they were 0.3 cents lower at149.0 cents.
In Perth they dropped 1.2 cents to 145.3 cents, in Darwin they fell 1.8 cents to 162.0, in Canberra they declined 3.9 cents to 148.2 cents and in Hobart they wereoff 3.6 cents to 152.9 cents.
