In the four weeks to 4 August 2019, the monthly average unleaded petrol (ULP) price in NT was 151.8 cents per litre (cpl). This was a monthly decrease of 2.7 cpl and a decrease of 11.8 cpl in annual terms. The average ULP price in Australia increased by 1.0 cpl over the month to an average of 141.7 cpl, however decreased by 4.1 cpl in annual terms. This resulted in a price differential between the NT average and the national average of 10.1 cpl (Chart 1).
The monthly average ULP price in Darwin decreased by 3.7 cpl to 140.1 cpl in the four weeks to 4 August 2019. This was the second lowest monthly average ULP price of all capital cities and a decline of 16.6 cpl compared to the same time the previous year.
The monthly average terminal gate price (TGP) for ULP in Darwin was 134.5 cpl, an increase of 5.8 cpl compared to the previous month, however a 3.7 cpl decrease compared to the previous year. This is consistent with the movement in Australian average TGP, which also increased by 5.7 cpl over the month to an average of 130.3 cpl. This was a decrease of 3.4 cpl compared to the previous year.
The monthly average gross indicative retail difference (GIRD) for ULP in Darwin was 5.6 cpl in July 2019, which was a decrease of 9.5 cpl compared to the previous month and a 12.9 cpl decrease compared to the same time last year. This was the lowest GIRD of all the capital cities, with Hobart recording the highest GIRD of 16.5 cpl. The national average GIRD decreased by 0.7 cpl from 12.1 cpl to 11.4 cpl in annual terms.
The monthly average price for diesel in the NT was 163.0 cpl in the four weeks to 4 August 2019. This was a monthly decrease of 0.2 cpl, and a decrease of 3.5 cpl compared to the previous time last year. Nationally, diesel prices decreased by 0.6 cpl in the month to an average of 147.8 cpl. This resulted in a price differential between the NT average and the national average of 15.2 cpl (Chart 2).
The TGP for diesel in Darwin was 138.6 cpl, an increase of 2.8 cpl in the month, however an annual decrease of 2.4 cpl. This was consistent with the movement in Australian average TGP, which increased by 2.8 cpl in the month to an average of 135.1 cpl.
The monthly average GIRD for diesel in Darwin was 8.5 cpl, which was a decrease of 3.5 cpl in the month and a decrease of 6.4 cpl annually. This was the lowest GIRD of all the capital cities, with Hobart recording the highest GIRD of 19.9 cpl. Darwin’s diesel GIRD was 4.3 cpl lower than the national GIRD of 12.8 cpl in the month.
In the four weeks to 4 August 2019, the monthly average prices for Brent crude oil was $63.67 per barrel in United States dollar terms. This reflects a decrease of 1.1% in the month and a decrease of 13.3% through the year (Chart 3).
In Australian dollar terms, the monthly average Brent crude oil was $91.40 per barrel. This was a decrease of 1.4% compared to the previous month and a decrease of 7.9% compared to the same time last year.
The Territory Government continues to implement a number of measures to improve fuel price transparency for Territory motorists and place downward pressure on fuel prices. These measures form part of the Territory Government’s continuing response to recommendations made by the Australian Competition and Consumer Commission (ACCC) in its 2015 Report on the Darwin Petrol Market and initiatives developed by other jurisdictions.
As a result, DTF has enhanced reporting and analysis of fuel prices across the NT by including analysis of diesel fuel, wholesale price margins and capital cities fuel price comparisons.
A key measure was the introduction of MyFuel NT, which allows consumers to easily compare fuel prices and to shop around for the lowest local prices, which was launched in November 2017. Go to MyFuel NT, the online portal to access the most up to date prices on fuel. The ACCC also monitors Darwin fuel prices in its Quarterly Report on the Australian Petroleum Market, which can be found under publications section of the ACCC website.
The practice of displaying discounted fuel prices on fuel display boards has been discontinued to provide customers with a real time retail prices, and to ensure that the price advertised on display boards matches the undiscounted price of fuel at the register and the bowser.
Retail fuel prices are based on data reported by the Australian Institute of Petroleum. For the latest available data and analysis, see the Department of Treasury and Finance’s Fuel prices economic brief or go to Australian Institute of Petroleum website for the data.
The majority of automotive fuel in the NT is sourced from overseas through the fuel import terminal and wholesale storage facility located at East Arm, near Darwin. The remaining supply of fuel is sourced from interstate fuel import and refinery terminals.
Factors contributing to the retail price of fuel in the NT are:
DTF monitors retail fuel prices in the NT on an aggregate monthly average basis. However, daily fuel prices can be found on Myfuel NT.
TGPs are used as a benchmark to monitor wholesale prices. TGPs are spot prices at which fuel can be purchased from a refinery or terminal and incorporate the price of crude oil, refining costs, transportation costs, wholesale margins and the Commonwealth’s fuel excise and GST. GIRDs are the difference between the average retail price and TGP, which provides an indication of gross retail margins across the market.