I don’t drive much these days. Working from home and living in a small town has it’s advantages and a big one that we have is that we don’t have any real Commute. My wife works less than 5 minutes drive away and my kids school is even closer. I’ve always wanted to have a simple life and I hated commuting primarily because of the time lost in the car / bus / train, but now there is another big reason to avoid commuting - Fuel prices are expensive and they are getting worse!
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Today I went to fill up our Van with Diesel Fuel. In the past I haven’t been too concerned about basic costs like this but now we’re on a Budget and the cost-of-living pressures are getting real – not just for Australia but people around the world are dealing with some serious Inflation. So what I do these days is check out the Petrol Spy to see what fuel prices are like around my area and then I’ll fill up where it makes sense when I am in that neighborhood. I was shocked today to see a massive spike in prices across the state just since I last filled up, only a couple of weeks ago.
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Since I am intrigued by markets and like to understand Macroeconomics I went on a bit of a rabbit hunt to try and understand what’s going on. To go from an average of $1.81 up to $2.10 in a month is an increase of over 16% and if you annualized that increase it’s something like 92% - which is getting near on Hyperinflation territory. I found a couple of articles from SkyNews like THIS ONE and THAT ONE but as is typical from mainstream journalists they really are primarily just reporting on the symptoms and not the cause. There are some vague references to the Fuel Excise being cut but that happened almost a year ago and shouldn’t be news to anyone unless they are doing some funky belated calculations.
This looks to me more like a supply shortfall, which is a much bigger concern and has the potential to see more rises ahead. Australia has fairly poor Fuel Security and we will be particularly vulnerable to major supply shocks if, for instance, a regional war broke out. Looking back into 2022 a lot of the inflation was blamed on the Ukraine War but our fuel prices here in Australia are higher now than at any time during 2022 so they can’t be using that old chestnut of an excuse with us in 2023.
Inflation is getting real here in Australia and I think we could be starting to get a real taste of what Hyperinflation might eventually look like, so be prepared for it and plan accordingly.
Here in the States, inflation at "street level" is very different from officially reported inflation.
Fuel here is rising slowly again... on my way home from town yesterday, I noticed the local price being US $5.39/gallon (works out to about 2.20 AUD/liter) which is up from just under $4.00 a year ago, or so.
Meanwhile, food prices are up on many items to the tune of 40-60% over the past 18-24 months against an "official" inflation rate that barely touched 10% for a limited time.
What's hitting people the hardest is "hidden" inflation. Say you're a homeowner... your property taxes and your insurance is based on the value of your property, which has been rising insanely in the current housing bubble. But that doesn't really show up anywhere (except in people's wallets!) because the measured rate per $1,000 is basically unchanged.
Yes, I have long believed that they are deliberately fudging the inflation numbers. If you aren't aware of it, check out Shadow Stats which measures todays inflation by previous metrics. It shows things a lot worse than they have been telling us.
Fuel prices are on the rise here as well. Crude oil has gone up nearly $6 US a barrel in the last 17 days. That is the issue at the pump.
Oil prices are up a little bit over recent weeks, but not by 16% and still lower than they were for most of 2022. No doubt its a combination of things and the WTI Crude price is a factor but there is more to this story...
THe pricing is bullshit to be straight up.
Shell down the road has Unleaded @ $2.24
Whereas, 5 km down the other way, the local independent has it @ $1.79 currently.
With other competitors sitting around $1.85.
... yet, when you go to the Eastern Suburbs, the pricing is consistently over $2!
The same can be said with Milk. Some shops are selling main brands for $5 for 2 litres, whereas, local independents have it for $3.80.
It pays to shop around (and use PetrolSpy)
When you're dealing with Oligopolies, it is just pretend economics.
Wow, that is a big discrepancy. All the servos up here are jacking the price hard so at least you have some options where you are. I hope those independents can continue to hold a decent price.
Just checked, they've upped it 10cents since this morning
I've tackled this topic in my latest post as well. I'm also following fuel prices on a daily basis and for the past couple of weeks these have gone through the roof. I don't buy into the war narrative. Russia is still exporting fair amounts of oil at pretty much the same prices as prewar. I believe what we are witnessing is nothing much but a wealth transfer.
Pretty much the same everywhere. Us, eu, china, everybody is getting analed harder and harder. And just wait for the food shortages next year, imo the real fun has yet to begin
I agree. The time to prepare is NOW.
Gas is on a spike here too. Looks like most of the stations on my way to work are sitting at $3.99 right now. Unfortunately, my wife and I drive a lot for work and our one vehicle isn't very fuel efficient. It sucks!
The inflation in Nigeria has risen by 24.08% just in July and the last time something like this happened was 18years ago
The cost of living is too expensive and a lot of people cannot afford it...
That's why so many people do not take their cars out because the price of fuel is very expensive now
A fellow Aussie to feel my pain. I feel it's a case of monkey see, monkey do. Once one station raises it prices, the rest will slowly follow.
Isn't there like a fuel Ombudsman or something that looks at petrol prices?
you mean you are facing the same problem we have here in Nigeria? That's rediculus so many people do not drive their cars again because of the cost of fuel, a litr of fuel is 1 USD and the money is no where to be found.
Fuel prices in Pakistan just got increase twice in this month and it's very brutal, sadly the people living in Pakistan can't do anything about it.
Last night, petrol price hiked up RS 17 and diesel price hiked to Rs 20 in my country which is peak price till now. Inflation is hitting hard.
Working from home is so much better for the environment. All that unnecessary travel and burning of fossil fuels. Stopped working in o&G years ago but afaik, the Saudis are trying to prop up oil prices by cutting output: https://www.reuters.com/business/energy/opec-meets-debate-production-quotas-new-cut-sources-2023-06-04/
I guess they need to pay for all those footballers they're buying somehow.
You are not alone. Prices of everything here in the US are a concern, and I expect that things will get worse.
!DHEDGE
An increase is the price of fuel brings inflation in every sector. Since covid inflation doesn't seem to stop. Governments have their explanations, sometimes logical. At other times, lame. The sufferers are masses.
With the increasing cost of living, member of every socio-economic statuts needs to be more prudent about one's expenses.
Auto fuel price for regular unleaded where I am in Canada is $2.059 CAD per liter , of course my vehicle is a Nissan EV Leaf. What I save at the gas pumps does not spare me at all at my grocer's checkout and just about anything else.
Your is a cool computer on wheels though. I like the electronic dynamo sound it makes.
This latest increase in fuel prices is hitting me hard now as I've recently started vanlife travel in Queensland at the moment. Being on a fixed budget I have set for my self I now have to travel less distance a week. Hopefully the spike in price will subside a bit soon🤔
😒👎🙏 yeah.. I hope it stops and gets better soon..
makes everything more expensive. It depends on how wages increase. one day we will all be making millions. And it will be one purchase😅
Yes You are saying right. Fuel prices are the biggest headache for all. That goes on increasing day by day.
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Here in Pakistan, the price was increased by 20 Pakistani rupees a week ago and now yesterday, only one price has been increased here, so the price is being increased here and people are very worried because the price of petrol is high. If it happens, the cost of all other things is also high. It has become so expensive that even living here has become very difficult.