MENU

Petrol prices jump

Motorists in Australia’s capital cities are paying around 10 cents a litre more this week for petrol compared to last week.

It’s the biggest one-week lift in more than seven years, according to the Australian Institute of Petroleum (AIP). On average, the national retail price for petrol rose by 6.3 cents to 144.9 cents a litre, the biggest rise in one week since September 2005.

Super cheap petrol in the last couple of weeks, with the daily pump price below cost price, meant the price had to rise at some stage. According to CBA economist Savanth Sebastian, wholesale prices have remained largely steady over the past few months – roughly between 130-135 cents per litre, so the recent spike in prices was likely due to fuel retailers recovering losses incurred over the last few weeks.

Caltex Australia Limited (ASX: CTX) and other petrol importers like Mobil, BP and Shell generally base their wholesale prices on Tapis crude oil, and Singapore refined petrol. Wholesale prices have been dropping, which means retail prices should fall in the coming weeks.

Coles – owned by Wesfarmers Limited (ASX: WES) has an agreement with Shell Australia to operate most of its service stations under the Coles Express banner, while Woolworths Limited (ASX: WOW) has a similar agreement with Caltex.

According to the latest AIP weekly report, Australia has among the lowest petrol and diesel prices in OECD countries, just above New Zealand, Mexico, the US and Canada. Most OECD countries have similar wholesale prices, but in some countries, taxes can make up more than half the retail price. Norway and Turkey charge around 250 Australian cents equivalent for a litre of petrol, with much of that being tax.

Foolish takeaway

Australians may complain about the petrol market in Australia, especially the sudden changes in price, but we’re certainly paying much less than many other countries, despite the recent price hike.

If you only invest in one company this year, make it our “Top Stock for 2012-13.” Operating in two hot markets — one set to double by 2012, the other predicted to grow 5x over the next five years — this stock is a solid growth play that also boasts strong recurring revenue, zero debt, and lots of cash. Get its name and full research case in this brand-new FREE report.

More reading

Motley Fool writer/analyst Mike King   owns shares in Woolworths.  The Motley Fool ’s purpose is to help the world invest, better.  Take Stock  is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  Click here now  to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!