Hold onto your bowsers: Petrol prices won’t get cheaper 19



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Christmas time late last year saw petrol prices fall to a 10-year low of around $1 a litre, and lately it seems they have plateaued at around $1.30-$1.40 per litre. But it doesn’t seem it is staying that way, if the latest Singapore gasoline price is anything to go by.

Australia bases our prices on the rate of oil in Singapore, and despite the petrol cost being 25 cents a litre lower than a year ago, the days we saw in December 2014 look to have been a once-off. At the end of last week, the price of oil in Singapore rose sharply as middle-eastern countries become increasingly worried about the worth of their oil, and the US dollar became weaker. An ongoing conflict in Yemen is worrying investors who believe it could lead to a disruption of oil supplies.

Despite all this, we aren’t having an oil shortage right now but we could fail to see another price drop even if there are savings on the cost of a barrel. According to MacroBusiness, the Singapore gasoline price rose by over 11 per cent in Australian dollar terms last week, which was the second biggest weekly lift in prices behind the gain recorded in the week to February 8 this year.

Filling up the car is one of our most regular purchases and seeing the prices hold steady right now is clearly not an indication of what’s to come in the future. We know fuel prices fluctuate but for so many, that few dollars of difference can make a large impact. Retailers too may struggle if petrol prices go up and not down soon, so that they can continue to stay competitive and maintain their customer base.

According to Commsec chief economist Craig James, “The days of super-cheap prices look to have ended – at least for now”, verbalising what we had feared.

As Singapore prices are leading our own retail prices for fuel, and there was 6.6 cent spike last week in the Asian nation (the second-largest weekly increase in the past 5.5 years), it suggests prices at the pump in Australia will just be on the up.

Mr James suggests that “motorists may need to find an extra $4.50 every time they fill their tanks with petrol” should the spike in wholesale prices be sustained. But can we really afford that? Or is it just how life goes?

This image below demonstrates the price of fuel in Brisbane this afternoon, when in December it was around $1.01 per litre. That’s a rise of around 10 cents per month.


Tell us this evening, have you seen an increase in fuel in your town? What will you do if you need to pay more for fuel? Will you drive less? 

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  1. The lowest they got to in our area was $1.39. And being rural means we have to use our cars more and travel further. We don’t have the luxury of public transport. At the moment it is $1.45 in our town. The oil companies rip us off becasue they know we have no choice but to pay.

  2. Ray and I went on a little road trip recently. It is amazing what 100 k’s makes to the price of fuel up here in NQ. Cairns is shocking when it comes to price

  3. We are still waiting for a real reduction in price – I mean, it would be nice if the folk outside the city areas paid the same prices, wouldn’t it?

  4. Can’t understand the price per barrel of oil is under 60.00 but petrol is over $1.00 litre, as the oil price started falling prices dropped for a few weeks then went back up the oil barrel has continued to drop

    1 REPLY
    • Ruth you are so right. Just gets back to what I previously said. Corporate Australia takes advantage of us, Politicians treat as idiots. It is so not right! Pollies don’t give a toss about We the worker/tax payer/supplier. They feather their own nest.

  5. Nothing will change whilst we have a few controlling . Politicians are to ‘balless’ to stand up to large Corporations. Mainly because when they out of Govt..They want a good job that pays well……We have NO good Politicians …It is a scary situation……They continue to disillusion me……& most of Australia. One wonders How we are now perceived by rest of world.. It is ALL so pre destined.

  6. We have Politicians that have never had an original thought in their life…Much less a proper job, where they have been held responsible/need to perform. Is it just me? Iron Ore Not what it was. So Why not look at Climate change & what we can do to fix..More jobs, better sustainability. Better for Environment. I repeat……..We have no one worthy of our Votes.

  7. We have worked all our lives & paid taxes….Paid into Super………for a good retirement. Now they want to tax us for that………Haven’t they already? How many times do they want to Tax us on the same amount of $’s. That is so NOT right for the average worker. I heard Mister Hockey say ‘Time of entitlement is over!’ Does that include the Fat Cats? ie: Him & his mates! …….This system is so lacking…..What is good for one..is not available to those that have worked for it…………..He can claim benefits we can’t………Time for change to the whole system. Politicians need to be held accountable for their spending…….It isn’t their $’s they so easily waste

  8. Here in Thailand it’s a doller a litre, everywhere, so what’s wrong in Australia? Greed, eh? 🙁

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