The charts below show recent movements in international benchmark prices relevant to the price of petrol and diesel in Australia. These market prices include the Singapore price of petrol (MOGAS95 Petrol) and diesel (Gasoil 10ppm sulfur) and the market prices for Tapis and North Sea Dated (Brent) Crude Oil.
Australia's local oil refineries constantly compete with imported petroleum products from large highly efficient refineries in Asia, regardless of the cost of importing and refining crude oil. Consequently, the price of petrol at Australian refineries is based on international petrol prices. If local prices were higher than international prices, imports of petrol would displace local production.
The above charts show the market prices for unleaded petrol, diesel and crude oil. Crude oil, diesel and petrol prices are closely linked, as the price of crude oil accounts for the vast majority of the cost of producing a litre of petrol or diesel. Crude oil is purchased in US dollars, meaning that changes in the value of the Australian dollar against the US dollar have a direct impact on the relative price of crude oil in Australian dollar terms. Therefore, changes in the Australian dollar/US dollar exchange rate must be taken into account when looking at movements in crude oil price.
|General Note:||AIP publishes the Argus crude oil and product quotes for the purpose of price transparency and to assist in demonstrating that the movements in product prices follow the medium term movements in crude oil prices. The Argus Tapis and North Sea Dated (Brent) quotes were chosen as representative regional crude oil price markers which are quoted daily. By utilising the Argus crude oil and product quotes, AIP does not intend to reflect the actual purchase prices of product or crude oil by individual AIP member companies. Consequently, appropriate care should be exercised when using this data to infer financial performance of individual companies.|
|Note 1:||The Petrol, Diesel and Crude Oil prices are provided by Argus and represent the end of day assessment for the prices of these commodities. From 1 January 2009, the diesel price marker is 10ppm sulfur diesel, consistent with changes to Australian fuel standards|
|Note 2:||Brent is both the name of a specific UK blend of crude oil and a generic term for light (low density) sweet (low sulphur) crude from the North Sea. The physical Brent market, which generates the Argus North Sea Dated and Platts Dated Brent crude oil benchmarks, is based on the lowest priced of a basket of similar crudes produced in UK and Norwegian waters: Brent, Forties, Oseberg, Ekofisk and Troll. These “Dated” physical benchmarks, and the Brent futures contract, listed on the Intercontinental Exchange (ICE), are used as the basis for the pricing of crude in many parts of the world, including Europe, Africa, Latin America and the Asia-Pacific region. Argus assesses the price of crude from Australian fields Vincent, Pyrenees, Cossack and Van Gogh as well as condensate streams North West Shelf and Ichthys at premiums or discounts to North Sea Dated. For information on crude oil pricing in Asia see International Crude Oil Pricing and the 2011 ACCC Formal Price Monitoring Report (page 60) at http://www.accc.gov.au/content/index.phtml/itemId/1020827.|
|Note 3:||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 4:||Exchange Rates are taken at close of business (4pm AEST) each day as published by the Reserve Bank of Australia.|