Australian drivers are being warned not to expect immediate relief from skyrocketing petrol prices that have risen again above $2.10 a litre, despite the sharp drop in crude oil prices this week.
Fears of a possible global recession and the impact of further pandemic lockdowns in China on fuel demand led the benchmark Brent oil price to fall nearly 10 percent on Wednesday morning, the largest daily percentage drop since March 9, before it rose slightly to $4 billion. 104 per barrel.
However, economists and energy analysts expect oil markets to remain tight as Western countries continue to shun Russian supplies, meaning the fall in prices probably won’t last long enough to spill over to Australian gas stations.
According to statistics from the Australian Institute of Petroleum, the average national price of unleaded petrol, which fell to $1.60 in April, has risen again to $2.12 per liter.
Auto industry groups said on Wednesday that continued volatility in oil markets meant the latest drop in crude oil prices was unlikely to provide significant relief for drivers.
“It’s long and short, 2022 has probably been one of the most volatile years we’ve ever seen — so, with these things going up and down, we’re taking them all with a bit of a grain of salt,” Bridget Ahern said, of the NSW-based National Roads and Motorists Association.
“If things stabilize and we stay around $100 then we would definitely expect prices to drop significantly… but we’ve seen this happen a few times over the past few months, but they haven’t stopped there.”
ANZ raw materials strategist Daniel Hynes said a lack of production from refineries that produce gasoline would also help keep fuel prices high. “The impact on Australian consumers may be somewhat limited in the shorter term,” Hynes said.