Weekly average diesel fuel prices in country and regional areas of Australia have eased slightly over the past month, averaging about 155c/litre, after an earlier 3c/l spike during March caused by global geopolitical issues and supply shortages.
Pump prices for diesel in country/regional areas of Australia averaged 154.7c/l for the week ended Sunday, May 20, down 0.6c from the recent high point recorded during April.
Weekly information released by the Australian Institute of Petroleum (see graph) shows average regional prices remain well above the earlier market peak seen in November last year, and the highest point since April 2011 when pump prices went above 157c/l.
The latest international oil market report says crude oil markets reversed their upward course in April and by early May futures prices had fallen $10-12/barrel amid disappointing economic data for the US and Europe and an apparent easing of tensions between the international community and major oil producer, Iran. Brent crude oil was last week trading near a three-month low of $113/bbl. Geopolitical risks will likely continue to keep prices high in coming months, analysts say.
The Australian Institute of Petroleum’s diesel price report for the week ending May 20 showed slightly easier prices higher in all states and territories, compared with this time last month. Biggest movements were seen in Western Australia, Tasmania, Victoria and NSW.
Regional diesel prices in the recent AIP report included:
- Victoria 152.4c/l (down 0.6c on March)
- NSW 154.6c (down 0.6c)
- Queensland 154.1c (down 0.3c)
- WA 159c (down 1.2c)
- SA 154.3c (down 0.4c)
- TAS 155c (down 1.1c), and
- NT 166.7c (down 0.1c).
The prices are calculated as a weighted average of retail diesel fuel prices for country regions in each State/Territory. All values include GST.
Variation in fuel oil prices can have a considerable impact of cost of production across the Australian beef industry, impacting on livestock transport, cost of shipping in live cattle and boxed beef exports, pumping stock water and providing station electricity in remote locations.
Crude oil, diesel and petrol prices are closely linked, as the price of crude oil accounts for the majority of the cost of producing a litre of petrol or diesel. Crude oil is purchased in US$, 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.