Petrol prices could jump 10c/litre within a fortnight. International crude oil prices take 10 days to flow through to our petrol prices. Petrol could go to $1.50/litre.
Crude oil was selling yesterday for $110 a barrel.
The high Australian dollar has a huge buffering effect on petrol prices. The Australian dollar’s value is now double what it was a decade ago when it was at the US50c level. If the Australian dollar was still at US50c petrol would be 70c/litre more expensive.
Average household expenditure on fuel expected to rise to $65 a week $10 more than a year ago.
Average prices for unleaded petrol vary between capital cities: Brisbane $1.36/litre Melbourne $1.40/litre Sydney $1.37/litre.
Discretionary expenditure on clothes household good and holidays will fall as fuel energy and water costs health costs rates and insurance all rise.
Saudi Arabia and Algeria’s stability are big ones to watch.