Recently I wrote a post to let people know petrol prices were on the increase. However, I have to say I've never seen this before, even as prices at those first stations to lift prices started to drop, we've seen prices go even higher. The petrol price hike looked like it was going to go to 167.9 but now a number of petrol stations have put prices up to 171.9.
The average gate price(think wholesale) today was 130.7 so this price has also increased 1.2 cents. That doesn't explain the additional 4 cent jump. As a consumer you can only think this is taking advantage of the hype recently in the media with the Saudi Arabia oil plant being bombed.
What will happen in the future is hard to say but the media is conditioning people to expect higher prices and since we're expecting it, it will probably happen.
There's still time to shop around so it's hard to tell if prices from now will go up fairly quickly or whether some will hold back. Certainly paying 171.9 when you can currently pay 126.5-129.9 elsewhere doesn't make much sense.
Now I'm not an economist but what I find interesting is higher petrol prices have an impact on inflation. I read a 10 cent increase in petrol gives a 0.6% increase in inflation. Since we're seeing that an more recently with the petrol price hikes, higher than expected inflation appears to reduce the chances of an interest rate drop. It is amazing how all these things seem connected. For the consumer all we see is higher prices in one area.
Keep a close eye on petrol prices over the coming days. Don't forget to lock in using the 7 Eleven Fuel App to keep prices low for another week.
Kelvin Eldridge
Petrol Prices Melbourne
The average gate price(think wholesale) today was 130.7 so this price has also increased 1.2 cents. That doesn't explain the additional 4 cent jump. As a consumer you can only think this is taking advantage of the hype recently in the media with the Saudi Arabia oil plant being bombed.
What will happen in the future is hard to say but the media is conditioning people to expect higher prices and since we're expecting it, it will probably happen.
There's still time to shop around so it's hard to tell if prices from now will go up fairly quickly or whether some will hold back. Certainly paying 171.9 when you can currently pay 126.5-129.9 elsewhere doesn't make much sense.
Now I'm not an economist but what I find interesting is higher petrol prices have an impact on inflation. I read a 10 cent increase in petrol gives a 0.6% increase in inflation. Since we're seeing that an more recently with the petrol price hikes, higher than expected inflation appears to reduce the chances of an interest rate drop. It is amazing how all these things seem connected. For the consumer all we see is higher prices in one area.
Keep a close eye on petrol prices over the coming days. Don't forget to lock in using the 7 Eleven Fuel App to keep prices low for another week.
Kelvin Eldridge
Petrol Prices Melbourne
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