Diesel fuel prices in most states have started to edge upwards again, after hitting two-year lows during July.
Prices in country and regional areas have generally trended lower since April, driven by a slow-down in world economies and resultant softer demand for fuel.
Nationally, diesel prices in country areas last week averaged 147.8c/litre, up 1.5c from a month ago, but still down about 6 percent from the April high-point.
Weekly information released by the Australian Institute of Petroleum (see graph at left, or click on image at bottom of page for a larger view) for the week ending August 19 shows a slight increase in prices from recent lows in all states and territories, compared with this time last month. Biggest movements were seen in Queensland, NSW and WA.
Regional non-metro diesel prices in the latest AIP report included:
- Victoria 145.1c/l (up 1.2c on July)
- NSW 147.7c (up 1.7c)
- Queensland 146.7c (up 1.6c)
- WA 152.1c (up 1.7c)
- SA 147.4c (up 1.1c)
- TAS 150.3c (up 0.2c), and
- NT 163.6c (up 0.7c).
The prices are calculated as a weighted average of retail diesel fuel prices for country regions in each State/Territory. All values include GST.
The latest international oil market report says sluggish economic growth forecasts in regions like the former Soviet States, China and the Middle East could restrict annual oil demand and prices heading into in 2013.
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.