Weekly average diesel fuel prices in country and regional areas have eased dramatically over the past month, averaging about 152c/litre, down from figures closer to 156c/l in April caused by global geopolitical issues and supply shortages.

Pump prices for diesel in country/regional areas across Australia averaged 152.3c/l for the week ended Sunday, June 17, down 3.8c from the recent high point.

Weekly information released by the Australian Institute of Petroleum (see graph) for the week ending June 17showed softer prices higher in all states and territories, compared with this time last month. Biggest movements were seen in South Australia, Victoria and Western Australia.

Regional diesel prices in the recent AIP report included:

• Victoria 149.7c/l (down 2.7c on May)
• NSW 152.3c (down 2.3c)
• Queensland 151.5c (down 2.6c)
• WA 156.3c (down 2.7c)
• SA 151.4c (down 2.9c)
• TAS 153.9c (down 1.1c), and
• NT 166.5c (down 0.2c).

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 crude oil markets reversed their upward course in April and by early June futures prices had fallen $12-$15/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. Geopolitical risks will likely continue to keep prices high in coming months, analysts say.

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.