economic brief
Fuel Prices September 2016
The following information was sourced from the
Australian Institute of Petroleum (AIP) and the
Australian Competition and Consumer Commission
(ACCC).
Gross indicative retail differences (GIRDs) are the
average retail price less the published terminal gate
prices and are used as an indication of gross retail
margins.
The reported monthly average price is for the four
weeks ending 2 October 2016 unless otherwise
stated.
The average monthly retail price of unleaded petrol
(ULP) across the Territory was 112.1 cents per litre
(cpl). The monthly average retail ULP price differential
between the Territory and the national average
was -4.8 cpl, 6.1 cpl lower than the same time last
year (Chart 1).
Australia1
150
130
Australia
110
90
50
price differential
30
10
-10
07
08
09
10
11
12
13
14
15
16
17
Year ended June
Source: Australian Institute of Petroleum
110.1 cpl
5.1 cpl
Chart 2: Retail ULP Price and Gross Indicative Retail
Difference
0.6 cpl
(monthly average, week ending 02 October 2016)
cpl
115.8 118.4 118.6 118.8 119.8
116.9
120 110.1 111.0
110
100
90
80
70
60
50
40
30
20
10
0
-10
Dar Perth Melb Adel Bris Can* Syd Hob Aust
Retail Price (labelled)
GIRD
117.6 cpl
Tennant Creek
Northern Territory
170
Monthly
change
n.p.2
n.p.2
Average1
Northern Territory
190
Average retail
ULP price
Alice Springs
Katherine
(monthly average)
cpl
70
Unleaded Petrol
Darwin
Chart 1: Retail Unleaded Petrol Price (ULP)
112.1 cpl
3.6 cpl
116.9 cpl
4.4 cpl
1
weighted average
2
AIP did not publish fuel price data last month
In Darwin, the monthly average retail price of ULP
was 110.1 cpl. This was the lowest retail price for ULP
of all capital cities in the month (Chart 2).
Darwin recorded an average GIRD for ULP of -1.3 cpl,
11.0 cpl lower than the national average GIRD for
ULP (9.7 cpl) (Chart 3). This was the lowest GIRD for
the month amongst all capital cities, which ranged
from 3.8 cpl in Perth to 12.6 cpl in Sydney.
GIRDs for ULP in Darwin from 2012-13 to the start of
2015 reached record high levels (averaging 24.4 cpl
over the period), however have moved closer to the
national average GIRD over the past year (Chart 3).
ACCC Fuel Price Monitoring
The ACCC released its Report on the Australian
petroleum market for the June quarter 2016 on
22 August 2016. The Report can be accessed here.
The Report follows the ACCC’s regional study into the
Darwin petrol market in 2015, which found that fuel
prices in Darwin over 2012-13 and 2013-14 were
significantly higher than expected, largely driven by
weak retail competition.
In the June quarter 2016, the average retail ULP price
in Darwin was 116.0 cpl, 2.0 cpl lower than the five
largest cites (Sydney, Melbourne, Brisbane, Adelaide
and Perth). ACCC highlights that this was the lowest
quarterly price differential since March 2000.
In 2015-16, the average retail ULP price in Darwin
was 124.4 cpl, 2.7 cpl higher than the five largest
cities. However, ACCC notes that Darwin’s average
price was lower in the months of July 2015, May 2016
and June 2016.
*No fuel import terminal in Canberra
Source: Australian Insitute of Petroleum
Chart 3: ULP Gross Indicative Retail Difference
(monthly average)
cpl
35
Darwin
30
25
20
15
10
5
Australia
0
-5
07
08
09
10
11
12
13
14
15
Year ended June
Source: Australian Insitute of Petroleum
Diesel
Economic Group │ Department of Treasury and Finance │ (08) 8999 6801 │ www.treasury.nt.gov.au │ [email protected]
16
17
economic brief
Fuel Prices
September 2016
The monthly average retail price of diesel in the
Territory was 121.1 cpl. This was 16.5 cpl lower than
the same time last year (Chart 5).
The monthly average retail diesel price differential
between the Territory and the national average was
3.6 cpl, down 4.6 cpl compared to the same time last
year.
cpl
170
150
130
119.4 cpl
0.2 cpl
90
123.7 cpl
2.2 cpl
70
121.1 cpl
1.0 cpl
50
Australia2
117.5 cpl
0.3 cpl
30
1
AIP does not report on diesel prices for individual regional areas of
the Northern Territory
2
weighted average
Australia
110
Northern Territory Average2
Regional
Average1,2
Northern Territory
190
Monthly
change
Average retail
price of diesel
Darwin
Chart 5: Retail Diesel Price
(monthly average)
price differential
10
-10
In Darwin, the monthly average retail price for diesel
was 119.4 cpl. This was the fourth highest retail price
of diesel recorded amongst all capital cities (Chart 6).
Nationally, the average price of diesel was 117.5 cpl.
The average Darwin GIRD for diesel was 11.1 cpl.
This was 7.8 cpl lower than the previous year and
1.9 cpl lower than the national average (13.0 cpl)
(Chart 7).
In other capital cities, GIRDs for diesel ranged from
7.7 cpl in Adelaide to 16.6 cpl in Perth (Chart 6).
Chart 6: Diesel Price and Gross Indicative Retail
Difference
Tapis Crude Oil
100
Average
spot price
(per barrel)
Monthly
Change
Annual
Change
Tapis Crude $US
46.80
1.3%
3.6%
Tapis Crude Oil $A
61.59
0.9%
10.4%
The monthly average spot price of Tapis crude oil
decreased by 0.9 per cent in the month to
$61.59 per barrel in Australian dollar terms, remaining
below long term trends (Chart 4). This corresponds to
a $0.6 per barrel decline, in Australian dollar terms.
07
08
09
10
11
12
13
14
15
16
17
Year ended June
Source: Australian Insitute of Petroleum
(monthly average, week ending 02 October 2016)
140
cpl
120 112.2 113.4
120.4 121.1 121.6 117.5
114.7 117.6 119.4
80
60
40
20
0
Adel Syd Melb Bris Dar Can* Perth Hob Aust
Retail Price (labelled)
GIRD
*No fuel import terminal in Canberra
Source: Australian Insitute of Petroleum
Chart 4: Tapis Crude Oil Prices
(monthly average)
$ per barrel
160
Chart 7: Diesel Gross Indicative Retail Difference
(monthly average)
cpl
40
140
120
$A
Darwin
35
100
30
$US
80
25
60
20
40
15
20
10
0
07
08
09
10
11
12
13
14
15
16
17
Year ended June
Source: Reserve Bank of Australia, National Australia Bank
5
Australia
0
07
08
09
10
11
12
13
14
15
16
17
Year ended June
Source: Australian Insitute of Petroleum
Released: 3 October 2016 │Next Release: 31 October 2016 (indicative)
2
economic brief
Fuel Prices
September 2016
Table 1: Monthly Average Fuel Prices
Monthly average
for the week ending (cpl)
04 Oct 15
Unleaded petrol
Retail price
Northern Territory
Darwin
Alice Springs
Katherine
Tennant Creek
Australia
04 Sep 16
Change (cpl)
02 Oct 16
monthly 1
annual2
132.5
130.6
138.9
130.1
150.9
131.2
115.7
115.2
n.p.
117.0
n.p.
112.4
112.1
110.1
n.p.
117.6
n.p.
116.9
-3.6
-5.1
-20.4
-20.5
0.6
-12.5
4.4
-14.3
122.4
119.2
106.9
102.7
111.4
107.2
4.5
4.4
-11.0
-12.0
Gross Indicative Retail Difference (GIRD) 4
Darwin
Australia
8.2
12.0
8.3
9.7
-1.3
9.7
-9.6
0.0
-9.5
-2.3
Retail Price Differential from Australia
Nothern Territory
Darwin
1.3
-0.6
3.3
2.8
-4.8
-6.8
-8.0
-9.5
-6.1
-6.1
Diesel
Retail price
Northern Territory
Darwin
Regional Average*
Australia
137.6
137.0
138.5
129.4
122.1
119.6
125.9
117.8
121.1
119.4
123.7
117.5
-1.0
-0.2
-2.2
-0.3
-16.5
-17.6
-14.8
-11.9
Terminal gate price3
Darwin
Australia
118.1
115.4
106.6
102.8
108.3
104.5
1.8
1.8
-9.8
-10.9
18.9
14.0
13.1
15.0
11.1
13.0
-2.0
-2.0
-7.8
-1.0
8.2
7.6
4.3
1.8
3.6
1.9
-0.7
0.0
-4.6
-5.8
3
Terminal gate price
Darwin
Australia
Gross Indicative Retail Difference (GIRD) 4
Darwin
Australia
Retail Price Differential from Australia
Nothern Territory
Darwin
Table 2: Monthly Average Crude Oil Prices
Monthly average
for the week ending ($)
Tapis spot price in $US per barrel
Tapis spot price in $A per barrel
Change (%)
04 Oct 15
04 Sep 16
02 Oct 16
48.53
68.77
47.41
62.18
46.80
61.59
1
compares the average of the last four weeks with the average of the corresponding four weeks of the previous month.
2
compares the average of the last four weeks with the average of the corresponding four weeks of the previous year.
monthly 1
-1.3
-0.9
annual2
-3.6
-10.4
3
terminal gate prices (TGPs) are the published daily spot prices at which fuel can be purchased from the fuel import or refinery terminal and provide
an indication of the actual wholesale price of fuel. The largest component of the TGP is the price of crude oil, followed by the Commonwealth
Government's fuel excise and goods and services tax.
4
gross indicative retail differences are equal to the monthly average retail price less the monthly average TGP and are used as a broad indication of gross retail fuel
margins.
* AIP does not report on diesel prices for Alice Springs, Katherine and Tennant Creek.
n.p .: data not published for this month
Caution is advised when using data for the Territory, which is often derived from small samples and can be highly volatile.
Source: Department of Treasury and Finance, Australian Institute of Petroleum, Reserve Bank of Australia, National Australia Bank
Although all due care has been exercised in the preparation of this material, no responsibility is accepted for any
errors or omission.
Released: 4 October 2016│Next Release: 31 October 2016 (indicative)
3