28 May 2007 - 11:01
  • News Code: 105745

The national average price is sitting at almost $1.31 per litre. The reason is twofold: The price of Singapore gasoline, which is tied closely to the price of unleaded in Australia, is still well above the lows of January; and US oil refineries are only now ramping up production after weeks of problems.

There have been predictions motorists would be paying close to $1.50 per litre in capital cities by the end of May but those fears have eased dramatically with the latest data.

 

CommSec equities economist Martin Arnold said there was room for some easing in the petrol market.

 

"While Australian petrol prices have hit fresh nine-month highs, there may be some light at the end of the tunnel," Mr Arnold said.

 

"With prices in Singapore falling and US refineries ramping up production volumes, there is scope for some easing in Australian prices in about a week or so."

 

Mr Arnold said Australians were now taking greater notice of the petrol price cycle and were less likely to be stung by steep weekend rises.

 

"The rise in the price of petrol is comparable to an increase in interest rates for people with a $200,000 home loan.

 

"But Australians have become more focused on their finances and by purchasing petrol at the lowest possible price, it will minimise the impact on the family budget."

 

PIN/News.Com.Au

News Code 105745

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