Australian Gasoline Prices Fall for Third Straight Week on Government Interventions

Australian motorists are experiencing some relief at the pump, with gasoline prices declining for a third straight week. This welcome trend is largely a result of proactive government measures aimed at mitigating the impact of global fuel market volatility, exacerbated by the ongoing conflict in the Middle East.

“

The national average petrol price fell about 5 per cent to A$2.129 (S$1.94) a litre in the week to April 19, but was still about 18 per cent higher than at the start of March as the conflict started.

The national average petrol price saw a reduction of about 5% in the week leading up to April 19, settling at A$2.129 per liter. While this offers a reprieve, it's crucial to note that prices are still significantly higher—around 18%—than they were at the beginning of March when the conflict escalated. This underscores the persistent sensitivity of the Australian market to international supply chain disruptions.

“

Canberra has sought to ease the domestic fuel crisis by sending delegations to key trading partners, underwriting oil shipments, relaxing diesel standards, cutting fuel taxes and tapping reserves.

Australia, despite being a major energy producer, relies heavily on imported refined fuels and maintains low stockpiles. This vulnerability was starkly exposed by the recent global price hikes. The government's intervention, including diplomatic efforts, underwriting oil shipments, and tax adjustments, demonstrates a commitment to stabilizing domestic fuel costs. However, the recent production cut at one of the country's few oil refineries due to a fire adds another layer of complexity, highlighting the delicate balance required to ensure fuel security.

“

In the near term, Viva Energy Group’s Geelong refinery will produce diesel and jet fuel at about 80 per cent of capacity and gasoline at around 60 per cent, the company said on April 20.