06 September 2022

International oil prices drove petrol prices higher despite excise cut

Despite the six-month cut in fuel excise reducing retail petrol prices in the June quarter 2022, the ACCC’s latest quarterly petrol monitoring report shows this could not prevent real (inflation adjusted) retail petrol prices reaching new 14-year highs due to international factors. Record international prices for crude oil and refined petrol were due to increased demand, production cuts by Russia and the OPEC cartel, and war in Ukraine. The report shows that June quarter average retail petrol prices in the five largest capital cities were 188.0 cents per litre (cpl), up by 6.1 cpl from the March quarter. This was the sixth consecutive quarter in which prices increased. In real terms, prices in the June quarter were the highest since the September quarter in 2008 (when average prices in 2021-22 dollars were 206.9 cpl).

Benefits already flowing from small business grants

Madeleine Ogilvie, Minister for Small Business, said the Tasmanian Liberal Government has a clear plan to support the small business sector to strengthen the future of our State. Local businesses can now apply to receive financial and business advice through round two of the Small Business Advice and Financial Guidance program. The program provides grants of between $750 and $1,500 to eligible small businesses. Grant funds can be used to obtain services such as financial and business advice, support, counselling and strategy development from a suitably qualified specialist or consultant.

ABS Key Indicators, Australia: Profits and wages continue to rise

Key statistics - Current price estimates for the June quarter 2022: Company gross operating profits rose 7.6% seasonally adjusted; Wages and salaries rose 3.3% seasonally adjusted. Chain volume estimates for the June quarter 2022: Inventories rose 0.3% seasonally adjusted.

Replace fuel excise: NRMA

With fuel excise scheduled to be reintroduced in full on 29 September 2022, the NRMA is calling on governments to work together to transition the antiquated tax system, safeguard the uptake of EVs from premature charges, and improve equity for all road users. The NRMA is calling on governments to work together on transitioning the antiquated fuel excise, which will increase to 46 cents per litre on the wholesale price of petrol and diesel on 29 September. A more progressive and equitable 'user pays' charging model will help to ensure that governments are able to raise the necessary funds to build and maintain roads over the long term. The NRMA believes a 'Road User Charge' model will improve the current tax system and help to ensure greater fairness for road users as Australians transition to more fuel efficient vehicles, including fully electric variants.

Economic Outlook - 'What Goes Up..."

CCIWA Chief Economist, Aaron Morey, says CIWA's latest economic forecast sees Western Australia well-poised to mitigate the worst impacts of a turbulent period ahead for the world economy. Entitled "What Goes Up..." our biannual 'Outlook' report - the only WA-based non-government economic forecast - clarifies that while economic growth will be moderate, WA should have an easier landing than most. The WA economy has ridden the waves of global commodity strength and fiscal support. But rising interest rates and costs of doing business are bringing us back to earth. On the trade front, China remains fixed upon 'COVID-zero' and continued restrictions on Australian goods, a key risk to WA's growth. War continues in Ukraine. Heading into this global turbulence, WA is in solid shape, with 4.5 per cent growth and a domestic economy 9.3 per cent bigger than pre-COVID.