Daily Management Review

Gasoline prices in Australia hit eight-year high


According to the Australian Competition and Consumer Commission, the price of gasoline in Australia has risen to its highest level in eight years as a result of Russia's special operation in Ukraine and other factors (ACCC).

The commission said in a statement that "Russia's invasion of Ukraine and the OPEC cartel's refusal to increase crude production, combined with a recovery in oil demand after countries eased COVID-19 restrictions, caused February prices for both international refined gasoline and average retail gasoline in Australia's five largest cities to rise to an eight-year high."

Retail gasoline prices in Sydney, Melbourne, Perth, Adelaide, and Brisbane hit A$1.82 ($1.3) per liter in late February, the first time they had done so since 2014. Prices peaked at $1.827 per liter in January of that year.

Prices continued to rise in the first weeks of March, according to the commission, due to present conditions. Retail gasoline prices in Australia are "primarily" dictated by international prices and the Australian dollar's exchange rate with the US dollar, according to ACCC Chairman Rod Sims.

The Australian government will put a 45-day embargo on imports of oil, petroleum products, gas, and coal from the Russian Federation, according to the Guardian Australia. The deferral will allow Viva Energy and Ampol, two local oil refineries, to receive the supply, which has already been ordered and paid for in Russia.

source: theguardian.com