Operators feel pain at the pump despite drop in petrol, diesel prices

<p>The price for Australian petrol has moved back in line with its international benchmark after a lag in price movement, the Australian Competition and Consumer Commission said today (Thursday, January 25).</p> <p>Australian oil companies benchmark petrol prices against the Singapore 95 unleaded international benchmark.</p> <p>ACCC chairman Graeme Samuel said the commission noticed a disparity between Australian prices and international from the first week in January.</p> <p>&#8220While there is usually a time lag of between seven and 10 days between movement in the Singapore price and Australian prices, that time lag had stretched out,&#8221 he said.</p> <p>"Over the past week, there has been a significant fall in petrol prices so that they now reflect more closely the Singapore international benchmark. </p> <p>&#8220We expect that average petrol prices will continue to move in line with this benchmark.&#8221</p> <p>Australian diesel prices are benchmarked using the same system.</p> <p>Australian Trucking Association chief executive Stuart St Clair said the Singapore benchmark for diesel had not fallen in line with the unleaded benchmark.</p> <p>Petrol monitor Fueltrac told the <em>ABC</em> the ACCC should investigate the price of diesel if it did not fall within a week, a suggestion supported by the ATA.</p> <p>Fueltrac general manager Geoff Trotter said the international price of diesel had dropped by about $6 a barrel, a drop which should result in lower diesel prices at the pump.</p> <p>According to data from the Australian Institute of Petroleum, the price of diesel has dropped by 1-2 cents since Friday (January 19). The highest average price was recorded today in Darwin, at 116.70 cents&#47litre, while the lowest, recorded in Melbourne (January 20) at 110.80 cents&#47litre.</p> <p>However, the inflated cost of diesel is unlikely to fall dramatically, as demand out of China and Australia, and a particularly cold northern hemisphere winter continue to tap resources.</p> <p>&#8220We’re encouraging operators to keep an eye on the cost of fuel,&#8221 Mr St Clair said. </p> <p>&#8220As the price goes up, it has to be factored into the cost of doing business.&#8221</p> <br />