Bowser prices keep soar­ing

Townsville Bulletin - - Investor -

DON’T WATCH: Best to look away from the bowser when fill­ing up next time. The av­er­age house­hold has seen

their monthly fuel bill jump $ 25 in the past four months to $ 200 MO­TORISTS fill­ing their cars up at the bowser prob­a­bly won­der where the dol­lar clock is go­ing next.

Com­mon­wealth Se­cu­ri­ties cal­cu­lates that the av­er­age house­hold has seen their monthly fuel bill jump $ 25 in the past four months to $ 200, as petrol prices rose to their high­est level in 29 months. And it might not end there. Last Mon­day’s weekly petrol prices re­port by the Aus­tralian In­sti­tute of Pe­tro­leum showed the av­er­age price in the pre­ced­ing seven days for un­leaded fuel rose a fur­ther 0.5 cents per litre to just over $ 1.43.

But for the poor souls liv­ing in Can­berra, the price soared 11.5 cents to $ 1.49.

Some may say Can­berra de­serves it – if talk­ing in the generic sense of par­lia­ment – for in­tro­duc­ing a car­bon pric­ing plan.

But there are plenty of other res­i­dents other than those in the Lodge.

The fed­eral op­po­si­tion claims that a car­bon tax will add 6.5 cents per litre to the price of fuel, which now seems pretty rea­son­able as a price move if you live in the cap­i­tal.

Of course, we still don’t know what im­pact the car­bon tax will have on house­holds, or any­thing for that mat­ter. We still only have a start date. What we do know, that with some rel­a­tive sta­bil­ity re­turn­ing to global fi­nan­cial mar­kets af­ter the shock of the hor­rific earth­quake and tsunami in Ja­pan, cou­pled with its nu­clear re­ac­tor scare, world oil prices are again on the march.

The bench­mark in­ter­na­tional crude price rose to over $ US106.50 ($ A104.42) at one stage on Thurs­day, the high­est since Septem­ber 2008.

Anal­y­sis by the Or­gan­i­sa­tion for Eco­nomic Co­op­er­a­tion and De­vel­op­ment re­leased this week says oil prices have risen some $ US25 in the past three months.

With all the other cost-of-liv­ing pres­sures house­holds are suf­fer­ing at the mo­ment, ris­ing petrol prices are prob­a­bly the last straw.

How­ever, the OECD does not be­lieve the in­fla­tion­ary im­pact of higher oil prices should re­sult in the need for higher in­ter­est rates.

Aus­tralia’s own in­fla­tion rate is ex­pected to spike when the con­sumer price in­dex for the March quar­ter is re­leased on April 27.

Trea­surer Wayne Swan re­it­er­ated in par­lia­ment this week that CPI in­fla­tion would add 0.5 per­cent­age point in the quar­ter from the ef­fect on food prices from the Jan­uary floods and Cy­clone Yasi.

The ex­pec­ta­tion is in line with the Re­serve Bank.

In its as­sess­ment, the OECD says while con­cerns about oil sup­ply dis­rup­tion have driven up oil prices, it ap­pears that spare ca­pac­ity in Saudi Ara­bia would suf­fice to com­pen­sate for pro­duc­tion losses in Libya.

‘‘ How­ever, if spare ca­pac­ity were to be ex­hausted, there could be fur­ther oil price hikes, and price volatil­ity might in­crease.’’

Best to look away from the bowser when fill­ing up next time.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.