Fed: Motorists payng $35 a month extra for petrol

AAP General News (Australia)
08-24-2009
Fed: Motorists payng $35 a month extra for petrol

CANBERRA, Aug 24 AAP - Petrol prices have risen for four straight weeks, costing motorists
around an extra $35 a month compared to the start of the year, an economist at Commonwealth
Securities says.

However, CommSec economist Savanth Sebastian says pump prices should be stable over
the next fortnight.

The latest weekly petrol prices report by the Australian Institute of Petroleum showed
the national average unleaded price rose 0.9 cents per litre to 127.6 cents in the past
week.

The average metropolitan price rose 1.0 cent per litre to 127.8 cents, while the regional
price was up 0.5 cent to 127.2 cents.

The cost of petrol has risen just shy of six cents a litre over the last month to stand
at levels last seen 10 months ago.

"Unfortunately the outlook for motorists is not great," Mr Sebastian said in a research note.

He said while over the past week the price of Singapore unleaded fuel - the benchmark
for the Australian price - had fallen by over $US2 a barrel, the Australian dollar has
also seen weakness.

"The end result is that the Singapore unleaded price is still holding near 10-month
highs of A$100 a barrel," he said.

"If there is any silver lining, it is that pump prices are likely to stabilise around
current levels over the next fortnight."

AAP cb/it

KEYWORD: PETROL

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