Siegel (Julian Segal), chief executive of Australian gasoline supplier Gardez (Caltex), warned that Australian gasoline prices were expected to continue to rise despite a three-year high, as recent increases in international crude prices have led to higher gasoline costs in Australia.
Australia`s average oil pump price has risen to A $1.46 a litre, the highest level since 2014, when international crude oil prices rose to more than US $100 a barrel, the Australian newspaper reported Monday. While Brent currently stands at US $77.73 a barrel, the decline in the Australian dollar means that international crude oil prices are now being translated into higher Australian dollar fuel prices.
"this is a significant increase in prices from $35 to $40 a barrel," he said. "International crude oil prices have doubled and the exchange rate is falling," Siegel said at the annual shareholders` meeting.
Siegel said the recent rise in international crude prices as a result of President Trump`s withdrawal from Iran`s nuclear deal, coupled with changes in pump prices that lagged behind crude prices, meant that Australia`s oil price was likely to rise.
Australia`s oil price changes will be delayed by one or two weeks, compared with Singapore`s, according to (Australian Institute of Petroleum), the Australian petroleum institute.
In the week to June, however, oil prices across Australia fell 0.3 percent from a three-and-a-half-year high of A $1.463, according to (CBA) data from the Federal Bank of Australia.
But Sydney`s oil price rose A $0.05 to A $1.48. Meanwhile, oil prices in Melbourne fell A $0.04 to A $1.46 and Canberra to A $1.481.
Notably, profits rose in the first quarter, thanks to higher sales of transport fuel. According to unaudited data, the statutory first-quarter profit after the Gardens tax reached A $ one hundred and seventy one million nine hundred and ninety nine thousand nine hundred and ninety nine. Total transport fuel sales in Australia rose 3 percent year on year in the first quarter to 4.1 billion barrels, according to Gardez. As a result, Gardez shares rose as much as 1.07%.
Boys, go to the oil storage!
