Following the price of Oil recently, and the price of Petrol locally in Australia, I have wondered why Petrol hasn’t risen faster in price.
I probably seem odd to many people, as petrol has been rising, and no-one likes it going up.
However… It could be much WORSE.
We have a very strong Dollar in Australia, and this is shielding us from a much higher petrol price.
Compare a similar graph of the UK petrol price to the Australian petrol price from Jan 2009 to Jan 2011.
The graph is to the same scale !!!
Consider what the Australian price would be if we had copied the UK price growth…
Consider what the Australian price WILL BE, when the Australian dollar returns to a more normal rate !!!
The UK Petrol price went from 90 to 132, a 47% increase
The Australian petrol price went from 109 to 136 a 25% increase
If the Australian price went up by the same rate as the UK, it would have been 109 +47% = 159 cents per litre.