Rising gasoline prices hurt Australian consumer confidence

Australia’s gasoline prices are trending towards record highs seen in March, as the fuel sales tax cuts introduced by the previous coalition government had little impact on global price volatility.

among them Latest weekly reportAccording to the Australian Petroleum Institute, the national average retail price of gasoline for the week to 22 May rose 14.1 cents to $ 1.99 per liter (US $ 5.33 per gallon), the fifth straight week of increase. ..

Within the jurisdiction, Queensland saw the largest changes in average gasoline prices, while South Australia’s prices remained about the same.

At the same time, average prices in metropolitan areas across the country rose 17.7 cents, and prices in the region’s Northern Territory remained the highest in the country at $ 2.26 per liter.

Despite the excise tax halving, gasoline prices continue to rise. 44.2 cents to 22.1 cents Per liter of gasoline and diesel as part of a $ 8.6 billion worth of living support package.

Craig James, chief economist at Commonwealth Securities, said the weekly price hike to 22 May was the third largest, 13 cents below the record high observed in March.

He estimates that the average gasoline price as of May 23 has already risen to $ 2.06 per liter, up 45.6 cents from the recent lows.

“It costs $ 278.74 a month for the average family to fill their car with petrol, an extra $ 57 a month compared to the beginning of the year,” James said.

The impact of rising fuel costs on Australian households was, to some extent, related to consumer sentiment.

The ANZ-RoyMorgan Consumer Confidence IndexThe index of future household spending has declined for four consecutive weeks since mid-April, reaching its lowest level since August 2020.

In addition, consumer confidence in the current financial situation fell 2.8%, following a 4.4% decline last week.

Similarly, Australian confidence in current and future economic conditions has declined by 0.5%.

The decline in self-confidence is most pronounced among respondents offering mortgages, plummeting 14.7% in the last three weeks.

Alfred buoy


Alfred Bui is a Melbourne-based Australian reporter with a focus on local and business news. He is a former small business owner and holds two master’s degrees in business and business law. Contact him at [email protected]

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