The chart below provides an overall 'snapshot' of movements in key market indicators relevant to the price of petrol at the pump in Australia. The Australian refining sector is a price taker. Domestic prices are closely linked to relevant international prices. The Singapore benchmark price of petrol (MOPS95 Petrol) is the key price benchmark for petrol in Australia. As the chart below shows, MOPS95 Petrol plus shipping costs and Australian taxes represents almost the entire wholesale price of petrol (around 95%).
|Note 1:||MOPS95 Petrol: the international petrol prices are provided by Platts (Copyright © 2017 S&P Global Platts, all rights reserved), and represent the end of day assessment for the mean of Singapore prices for 95 Octane Petrol (MOPS95 Petrol). No portion of the publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed, without prior written Authorisation from Platts. Platts is a trademark of S&P Global. Information has been obtained from sources believed reliable. However, because of the possibility of human or mechanical errors by sources, S&P Global or others, S&P Global does not guarantee the accuracy, adequacy or completeness of any such information and is not responsible for any errors or omissions or for results obtained from use of such information.|
|Note 2:||SHIPPING: is the weighted average of daily market shipping rates (Australian cents per litre) for journeys from Singapore to major Australian ports (weighted by the volume of fuel sales in the relevant State). Source data include Platts, Worldscale, Australian Petroleum Statistics and the Reserve Bank of Australia.|
|Note 3:||TAXES: fuel excise and GST, weighted by the volume of petrol consumed in each State. From November 2014, excise rates are indexed bi-annually (Feb & Aug each year) in line with CPI.|
|Note 4:||NATIONAL AVERAGE PRICES: are derived from capital city prices weighted by fuel volume consumed in each State. The historical AIP data for retail petrol prices is based on market data supplied by MotorMouth – see www.motormouth.com.au.|
UNDERSTANDING MOVEMENTS IN KEY PETROL PRICE INDICATORS
The chart above provides an overall 'snapshot' of movements in key market prices relevant to the price of petrol at the pump in Australia. Understanding the relationship between market prices and their broad makeup, is important to understanding the petrol market in Australia.
The chart below aims to help this understanding by proving more information about each price series and the influencing factors.
These charts have been prepared by ORIMA Research Pty Ltd on behalf of the Australian Institute of Petroleum.