Just needed to pick up more fuel for mowing. Such is how it is when the rain finally stops, the sun comes out and one is looking at 2 weeks growth in summer Qld. 221.9 cpl for U91 for the little mower and 255.9 cpl for the diesel for the bog mower. Around 20cpl to 30cpl more than what was expected on the end of the most recent peak in the pricing cycle locally. Although 3 weeks prior with the low in the cycle the base price for U91 varied between around 164cpl and 184cpl depending on the site.
It still pays to shop around using ones favoured fuel pricing site. On Friday last we’d purchased U98 210.9cpl at the local Coop - Shell branded fuel. Accustomed locally for U95 at the cycle peak to be in the 220-230cpl range and U98 another 10cpl more expensive. The impact of the current price increases for us appears to have been amplified. They have occurred relative to a high in the now routine price cycles for fuel in and around the major capitals.
There is sufficient public commentary on the price of fuel to not need to say more. Assuming the ACCC acts beyond simply dampening down it’s feather used to tickle businesses doing the wrong thing by consumers.
Australian consumers have often been put at a disadvantage thought major international events. Some as per the most recent have impacted on the price of fuel. Although supply in Australia reportedly has only so far been impacted through panic buying. FOMO or price shock minimisation or both.
Australian consumers cannot change the course of the latest events. However there are always lessons to be learnt. Australia has many strengths in respect of it’s geographic position and resources which have shielded us at times form worse.
COVID will remain in the memories of most. It impacted all consumers. How we were impacted differed due to circumstance and where we lived. Memories and opinions about what was done at the time, too little too much also vary. To suggest regardless Australia fared better than many other developed nations - lives lost, public spirit, economic resilience.
The GFC in 2007/8 brought on for a period peak petrol prices of over $2.00 per litre for regular unleaded 91. These events brought on largely by risk taking and a failure in financial markets were tied to investment in housing property. Notably the USA. Australia was not immune from the fall out, although our regulation of financial institutions and loan facilities largely shielded the nation from worse as evident in the USA.
There have also been multiple significant evens globally impacting on Australia’s fuel/gas supply and prices. For many these go back to the 1970’s. The impacts on pricing following the attack on Ukraine by Russia recent.
According to the Australian Institute of Petroleum, average retail diesel prices in Australia hit record highs after Russia’s full-scale invasion of Ukraine — surging to $2.34 a litre in June 2022, up from lows of around $1.20 in 2020.
Australia is energy rich relative to our annual needs. Especially solar and relative to population wind. Unlike some other nations however Australia has a greater reliance on liquid fossil fuels. We’ve become more dependant on them and not less. Notably diesel and petrol. Mostly due to the lower initial investment and preference for convenience of use compared to the alternatives. For Australia petroleum resources are not in abundance. Hence our need to import and reliance on the international market/supply, including from the Middle East region.
Irrespective of the actions of other nations, there is a long history of instability in the Middle East. On one hand arguably due to the abundance of crude oil and its importance in the current global energy mix. On the other - more complex issues of national identity.
Some nations, Australia remains far from achieving self reliance have strived for energy independence. IE reduced reliance on imported supply notably of petroleum. For Australian consumers there is an opportunity to compare how the current situation and fuel price increase affect our costs and those elsewhere.
EG The USA is the world’s largest consumer of liquid hydrocarbon based fuels. It is also the largest producer. In 2022 the USA moved from being a net imported to a net exporter. Although it imports crude and finished fuels from a number of nations. It has minimal reliance on OPEC (the Middle East for supply of imports). Norway another due to it’s increasing adoption of BEV’s has taken a different path maximising the benefits available from it’s energy resources.
It would be useful to hear how the current situation with fuel supply is impacting on those Australian’s who now have BEV’s. Even those with PHEV’s which can if fully charged before driving complete moderate journeys in theory without the need to use any liquid fuel?
To suggest there will be an increased interest and possible rush by some to purchase a new vehicle, firstly electric, or secondly one that uses far less fuel than the 10-20 year old 4WD Ute/truck.
Agriculture:
Australia is a net exporter of food and agricultural products. We don’t expect to pay more or noticeably more if we continue to purchase local produced and sold F&V - accepting what is in season rather than products brought in through the supermarket supply chains from outside our immediate district. For any one in a large city where most has been through multiple transport links in the supply chain, a greater impact.
Of note though fuel is just one component of the costs in the agricultural production and supply chain. Any increase in prices should not exceed a smaller fraction of what consumers see first hand at the bowser. Although it is not beyond supermarkets to overstate the impact, expect many consumers will simply change buying habits. The major supermarket chains know from past experience increasing prices causes consumers to change what and how they spend affecting growth in sales and turn over.
, I saw diesel in Tamworth at $2.70/litre this morning, up 20c since yesterday and almost $1 since last week.
