Diesel fuel prices in all states and territories have continued their recent surge, after hitting two-year lows during July.

Fuel prices in country and regional areas across the nation have lifted strongly over the past two months, based on latest weekly price reporting information released by the Australian Institute of Petroleum.

Nationally, diesel prices in country areas last week averaged 154c/litre, up 1c on a month earlier and a hefty 6.2c rise from this time in August when the average across Australia was 147.8c/litre. Prices in most states are now again approaching the April year’s high-point.

The change has been driven by rising crude oil prices, as OPEC crude oil supply fell to an eight-month low in September, at the same time as world fuel demand projections for the remainder of 2012 and 2013 were raised. Brent Crude oil prices rose a further $2/bbl in early October, to $115/bbl.

Information released by the Australian Institute of Petroleum (see graph here, or click on image at bottom of page for a larger view) for the week ending October 21 shows a strong increase in prices in all states and territories, with biggest movements were seen in Tasmania, Queensland and SA.

Regional non-metro diesel prices in the latest AIP report included:

• Victoria 151c/l (up 1.0c on September)
• NSW 153.8c (up 0.7c)
• Queensland 153.4c (up 1.1c)
• WA 157.9c (up 0.7c)
• SA 154c (up 1.4c)
• TAS 157.1c (up 1.2c), and
• NT 166.6c (up 1.0c).

The prices are calculated as a weighted average of retail diesel fuel prices for country regions in each state/territory. All values include GST.

Variation in fuel oil 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 currency have a direct impact on the relative price of crude oil in A$ terms.

• Click on the image here for a better view of recent regional Australian diesel price trends.