Diesel fuel prices in most states and territories are showing signs of easing, after reaching five-month highs during October.

The graph published here, based on weekly price reporting information released by the Australian Institute of Petroleum, shows diesel fuel prices in country and regional areas surged strongly since August, before starting to soften a little in early November.

Nationally, diesel prices in country areas for the week ended Sunday, November 18 averaged 153c/litre, down 1c/l on a month earlier, but still 5.2c above August before the current rising trend started.

The change has been driven by softening in crude oil prices, as OPEC crude oil supply improved after falling to an eight-month low in September, at the same time as world fuel demand projections for 2013 were lowered, due to the state of the global economy. Brent Crude oil prices eased $3/bbl in early November, to $112/bbl.

Information released by the Australian Institute of Petroleum (click on image at bottom of page for a larger view) for the week ending November 18 shows an easing trend in prices in most states and territories compared with a month ago, with downwards movements seen in Western Australia and South Australia. Going against the trend were Tasmania and the NT, which both rose.

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

• Victoria 150.1c/l (down 0.9c on October)
• NSW 152.9c (down 0.9c)
• Queensland 152.3c (down 1.1c)
• WA 156.3c (down 1.6c)
• SA 152.5c (down 1.5c)
• TAS 157.2c (up 0.1c), and
• NT 167.6c (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.