Oil prices may have fallen 20 percent in the past month, but motorists in Melbourne are being hit by some of the highest prices in the country.
Crude oil prices have fallen about 10 percent in the past day to their lowest level in months, but Australian households may still be hit by higher fuel prices.
WTI crude dipped below $98/barrel between Tuesday and Wednesday – down 20 percent from early June highs – but despite falling oil prices in Melbourne, lead-free rose 20 percent over the weekend to $AU2.39/litre , where it stays.
According to petrolspy.com.au, drivers in Melbourne are bearing the brunt of the price hikes, with unleaded prices ranging between $2.05/L and $2.25/L in all other capital cities in the country.
Not all Melbourne petrol stations have increased their prices during these school holidays, with a handful still staying below $1.99/L at the time of writing. $20 on a fill-up.
But prices could rise, with Prime Minister Anthony Albanese confirming that the fuel tax cut – introduced by the former government for a six-month period to help ease household costs of living – will not continue when it expires on 28. Sep 2022.
“The former government has implemented a time-limited change in petrol payments,” Albanian told media on Wednesday morning.
“Before the election, both parties said they had no plans to increase that further in the future.
“And those are the circumstances we have to deal with. We can’t do everything we would like to do.”
While the deputy prime minister had previously said the 22.1c/L tax would not go through, the prime minister yesterday cited $1 trillion in debt from the federal government as the reason behind the decision.
Organization of the Petroleum Exporting Countries (OPEC) Secretary General Mohammad Barkindo said at a conference earlier this week that the oil industry “is facing enormous challenges on several fronts,” he said. oilprice.com.
“The ongoing war in Ukraine, a COVID-19 pandemic that is still among us, and inflationary pressures around the world have converged in a perfect storm that is causing significant volatility and uncertainty in commodity markets in general. More importantly , in the world of energy,” he said.
Financial analysts are divided on where oil prices are headed from here, with JPMorgan warning it could hit $380 a barrel in the worst-case scenario, while a recent report from Citibank (via Bloomberg) suggested it could drop to $65 a barrel by the end of this year due to potential recession risks in key markets.