Fuel prices to increase with market optimism: economist

31/07/2012 - Petrol prices have edged higher in the past week and motorists can expect further increases if renewed optimism in global financial markets continues, Commonwealth Securities (CommSec) says.

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The latest weekly Australian Institute of Petroleum fuel price report shows the national average for unleaded petrol rose by 1.5 cents per cent litre in the past week to 137.7 cents.

The metropolitan average price rose by 1.8 cents per litre to 136.3 cents, while the regional average rose by 0.9 cents to 140.5 cents.

CommSec chief economist Craig James says Singapore gasoline prices, the benchmark for local prices, had eased initially but kicked higher on Friday as optimism returned to equity and commodity markets.

"The bottom line is that motorists should expect petrol prices to edge their way higher if the positive mood on financial markets continues," James said in a weekly petrol analysis on Monday.

He said increased volatility, combined with an upward drift in prices, could dent consumer confidence.

"Filling up the car with petrol is the single biggest weekly purchase for most households, so the future course of petrol prices will be keenly watched by any consumer-dependent business," James said.

Source: AAP

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Have your say...

Ross Williams | 31/07/2012 12:13 1

Is ComSec now in bed with the oil companies? Why are they pointing to higher petrol prices instead of analysing the current oil company ripoffs. Fuel at 137c is the same as when oil was $200 per barrel and the dollar was under 80c cents. Oil is now $100 per barrel and the dollar is around or over par. The real price of today's standard fuel is 78c. what a ripoff.

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