SA: Petrol prices to drop says RAA

AAP General News (Australia)
08-16-2006
SA: Petrol prices to drop says RAA

ADELAIDE, Aug 16 AAP - Petrol prices should drop next week to their lowest level in
almost two months, South Australia's Royal Automobile Association (RAA) says.

The RAA said pump prices should go as low as $1.28 a litre, reflecting a recent fall
in prices in Singapore.

"While the value of a barrel of crude oil remains high, motorists and those making
media comment need to understand that it is not the sole factor affecting what we pay
at the pump," RAA senior analyst Hamilton Calder said.

"Australian oil refineries compete within the Asian region, where the price out of
Singapore is used as a benchmark.

"Any change to the Singapore parity price typically takes one or two weeks to flow
through to the Australian market, a fact which Australia's major oil companies openly
admit to."

In the past eight days, the Singapore parity price has dropped considerably from about
$117 a barrel of unleaded petrol to below $107, its lowest level since mid-June.

"If oil companies are operating as they say they do, motorists should actually be seeing
prices at their lowest level in two months," Mr Calder said.

"Any price movement otherwise should be seen by motorists as blatant profiteering by
the industry and deliberate exploitation of an already vulnerable consumer market."

AAP tjd/srp/nf

KEYWORD: PETROL RAA

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