Diesel prices across Australia’s capital cities have reached their highest level since April, with Canberra recording an average price above $2.70 a litre as rising international oil and diesel costs put pressure on Australian motorists.
Oil prices have risen since early August amid the ongoing conflict involving Iran and the United States, with Brent crude trading close to US$100 a barrel.
The Singapore benchmark for Australian fuel imports, Tapis crude, climbed to about US$120 a barrel, after sitting around US$100 for much of August, according to Argus Media.
Commonwealth Bank analyst Vivek Dhar said the Singapore gasoil price, which acts as an important benchmark for Australia’s diesel imports, had reached its highest level since 1 May. He also said Asian diesel markets were becoming tighter.
Higher import costs are flowing through to Australian retail prices. According to MotorMouth, average diesel prices have risen above $2.50 a litre in every capital city except Perth, where the average is about $2.49.
Canberra is currently recording the highest average diesel price, at more than $2.70 a litre.
Petrol prices are also increasing. Average unleaded petrol in Canberra has reached $2.18 a litre, the city’s highest level in almost five months, while Perth is averaging $2.16. Across the capital cities, average unleaded prices are now at least $2.05 a litre.
The higher fuel costs are adding to pressure on Australian households and businesses, particularly those that rely heavily on diesel for transport and other operating costs.
Source: The Guardian
