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 (MOGAS95 Petrol) is the key price benchmark for petrol in Australia. As the chart below shows, MOGAS95 Petrol plus shipping costs and Australian taxes represents almost the entire wholesale price of petrol (between 90-95%).
|Note 1:||MOGAS95 PETROL: the international petrol prices are provided by the Argus Media Group, and represent the end of day assessment for the midpoint of Singapore prices for 95 Octane Petrol (MOGAS95). The Australian Institute of Petroleum obtains confidential proprietary data from the Argus Media group under license, from which data the Australian Institute of Petroleum conducts and publishes its own calculations and opinions. Argus makes no warranties, express or implied, as to the accuracy, adequacy, timeliness, or completeness of its data or the Australian Institute of Petroleum’s calculations or opinions, or their fitness for any particular purpose. Argus shall not be liable for any loss or damage arising from any party’s reliance on Argus’ data or the Australian Institute of Petroleum’s calculations or opinions, and disclaims any and all liability related to or arising out of use of Argus’ data and/or the Australian Institute of Petroleum’s calculations and opinions to the full extent permissible by law. For further information about Argus products and services, see www.argusmedia.com|
|Note 2:||SHIPPING: AIP estimate, based on various sources (e.g. Platts, ACCC, 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.