DIESEL fuel prices in regional/rural areas of Australia have found a level around 123c/litre over the past month, after earlier surging from ten-year lows in March.
The recent rises have come on the back of currency movement, steady decline in US oil production and higher than expected demand for diesel fuel in some parts of the world.
Analysts have adjusted global fuel oil demand higher for the back half of this year, led by strong gains in India, China and, more surprisingly, Russia. European fuel oil demand grew faster than expected over the past six months, despite a milder than usual northern hemisphere winter.
Supply and demand are expected to again move closer to equilibrium towards the end of 2016.
After hitting ten-year lows in March when the national average price in rural/regional areas of Australia dropped to 112c/litre, prices have now stabilised at a level around 11c higher.
Beef Central’s regular diesel fuel price report is based on the latest Australian Institute of Petroleum weekly survey. Biggest rises over the past month were seen in Queensland, NSW and Victoria.
Based on current average diesel prices for regional/rural areas of Australia, filling a Toyota Landcruiser 200 series (138 litres, main and auxiliary tanks) today would cost $164 – still $25 less than the same fill this time last year, at the peak of the market.
Regional/rural non-metro diesel prices in the latest AIP report for the week ended last Sunday, July 10 included:
- Victoria 119c.9/litre (up 4.2c since late May)
- NSW 122.7c (up 4.4c)
- Queensland 124.9c (up 5c)
- WA 125c (up 2.1c)
- SA 119c (up 0.8c)
- TAS 124.6c (up 1.7c), and
- NT 127.3c (up 4c).
Monthly diesel report notes:
Australian Institute of Petroleum’s reported prices are calculated as a weighted average of retail diesel fuel for non-metro regions in each state/territory. All values include GST.
Variation in fuel prices can have a considerable impact of cost of production across the Australian beef industry, impacting on livestock transport, cost of shipping in live cattle and boxed beef exports, pumping stock water and providing station electricity in remote locations.
Crude oil, diesel and petrol prices are closely linked, as the price of crude oil accounts for the majority of the cost of producing a litre of petrol or diesel. Crude oil is purchased in US$, meaning that changes in the value of the A$ against the US have a direct impact on the relative price of crude oil in A$ terms.