Checking the government websites (Australia) regarding the fuel prices and what influences them:
- International benchmark prices
- Other costs and margins
Additionally there is this strange phenomenon of the weekly price changes, where the price of fuel fluctuates within a week or even within the same day. This, according to the website, it can be attributed to
- The level of demand for petrol on different days of the week
- The level and extent of competition in particular locations
- Pricing arrangements between suppliers and retailers.
Over the last months the Australian dollar has significantly increased its value over the American dollar and the price of crude oil has also dropped quite a bit. Yet the price of fuel at the pump has not only failed to dropped but it has increased every single week over the last couple of months.
Is this price normal or is it artificially maintained at that level? Is there something additional behind these prices that I fail to understand? Should we expect it to drop any time soon?