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Aussie petrol prices just had the biggest hike on record

·Contributing editor
Petrol prices surge. Source: Getty Images
Petrol prices surge. Source: Getty Images

Australian petrol prices soared last week, recording the largest weekly increase on record.

Data from the Australian Institute of Petroleum (AIP) revealed the national average price of unleaded petrol jumped by 10.5 cents to 136.9 cents a litre.

The average metropolitan price jumped by a whopping 13.8 cents from a week earlier, substantially higher than the 3.9 cent increase seen in regional areas over the same period.

Likewise, prices in Melbourne, Sydney and Brisbane – Australia’s largest cities – soared by 18.2 cents, 17.5 cents and 15.3 cents, lifting to 139.4 cents, 138.3 cents and 140.9 cents per litre respectively.

Prices rose by a smaller 9.7 cents and 2.2 cents respectively in Adelaide and Darwin but were largely unchanged in all other capital city markets.

“Petrol discounting cycles in southern and eastern mainland capital cities ended at the same time with prices peaking on February 19 or 20,” Craig James, Chief Economist at Commsec said.

Along with cyclical movements at retail outlets, James says global factors also contributed to the sharp lift in prices.

“Oil prices are trading at their highest level since November 12,” he said.

“Investors have especially been encouraged by progress at the China-US trade talks and there has been further encouragement about prices with the decision of the US Federal Reserve to remain patient about changing monetary policy settings.

Oil price turnaround

However, oil futures sank more than 3 per cent yesterday after US President Donald Trump said OPEC should ease its approach on boosting crude prices, which he said were “getting too high”.

After hitting their highest in over three months last week, Brent crude oil futures were down $2.06, or 3.1 percent, to $65.06 a barrel by 1:54 p.m. EST (1854 GMT) and U.S. crude fell $1.76 to $55.50 a barrel, also a 3.1 percent loss.

“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile!” Trump tweeted, his latest in a series of tweets or comments made regarding oil prices since April 2018.

Will we see this price dip knock on to our petrol prices?

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