7 October 2004 AA PETROL WATCH – September 2004

7 October 2004 AA PETROL WATCH – September 2004
AA Petrol Watch noted that petrol prices remained at a high but relatively stable level throughout September, despite an increase in the international oil price and some variation in the exchange rate.

In most main areas the pump price of 91 Octane varied between 118.5 and 120.9 cents per litre and 96 Octane varied between 124.5 and 126.9 cents per litre.

There was however an increase in diesel prices during September, with the pump price increasing by 4 cents per litre in most main centres from an average of 78 cents per litre in the early part of the month to reach 82 cents by month’s end.

The AA today noted that international oil prices would likely remain high in the near future meaning high pump prices.

“Motorists want fuel retailers to signal to them when they intend to increase their pump prices prior to making those price increases to provide them with an opportunity to fill their tanks at a lower price” Darren Baars, AA Motoring Policy Analyst said today.

Mr Baars went on to say “Motorists are also expecting to see that the effects of good competition in the fuels retail market and the present high exchange rate will ensure that fuel prices do not reach excessive levels in the future”

The AA also noted that despite high crude oil prices, much of the current cost of petrol reflects the taxes collected by the Government (see attached graphic), with less than half of that tax revenue collected actually being spent on essential transport infrastructure and road safety activities. This tax includes GST, the collection of which by the Government increases as the pump price for fuels increases. AA Petrol Watch will continue to monitor petrol prices and report on them regularly.

ENDS

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