Why Fuel Prices are Increasing in Australia?
It is not happening in Australia alone. Several countries across the globe are now facing the increases fuel prices. The current COVID crisis is one of the biggest reasons for it. But there are other factors that add to the alarming reasons why fuel prices are going up every day.
Fuel price fluctuate almost every day and it is normal. But sudden spike in the fuel price and no sign of decrease is worrisome. It is important to understand the reasons behind it so that you can plan your fuel consumption accordingly. Apart from regulating your fuel consumption, use of the best fuel additive in Australia and taking a good care of your vehicle can also help reduce your cost.
Here are some of the reasons behind fuel prices in Australia and many parts of the world:
1. Fuel Price Cycle
This is common across the world. The price cycle is the movement of prices going up and down regularly. This price fluctuation is common and expands over many days and week. It is a deliberate pricing strategy by the fuel retailers. One day the price may spike and fall for the next few weeks. This is one of the many reasons why there is a price hike on fuel like petrol and diesel. The best thing about this is that its never constant. You will always see up and down in fuel prices. The real problem is when the prices go up and don’t come down for a very long period of time.
2. Holiday seasons can impact the price
When there is more demand and short supply, the price will be higher. This what happens with the fuel during the holiday seasons. Week long holidays can result in increase in demand and hence the price rise. Public holidays determine the time when you can expect the fuel price to go up. This always happen. What you can do is plan your travel accordingly to save cost. Or simply go with it as the price will eventually come down when the holiday season is over.
3. International Standard Fuel Prices
This one goes without saying that the international fuel price is one of the reasons for spike in fuel rates in Australia. This is true for all countries in the world. The International standard fuel price will always affect the domestic fuel prices. Global fuel prices change – increase or decrease – for many reasons. Current COVID situation has obviously affected the manufacturing of the crude oil. This means, there is a wider gap in demand and supply.
Manufacturing costs are another factor that results in price hike. Then there is competition which also adds to the cost. There are fewer oil producers in the world which makes it easier for a few countries to control the price of the fuel.
Since the international fuel price is set in U.S dollars, the value of the Australian Dollar affects the price of the fuel. When its low, the fuel price will be higher and it is higher, the retail fuel price will be lower.
How Do you Maximize the Use of Fuel to Reduce Cost?
Fuel consumption by individual depends on lot of things like traveling needs, income, type of vehicle you use and regular maintenance. You cannot do much about the price hike, but you can definitely improve performance and reduce cost. For instance, if your diesel engine is slow and inefficient, it will consume more fuel. To tackle this issue, you have to take a few steps, such as:
· Regular maintenance of the vehicle
· Check engine for build-ups and contamination
· Using the best diesel fuel additive in Australia
· Use the best fuel additive in Australia for maximizing performance
It is important to use the best quality fuel additives and lubricants to keep the engine in good condition.
These are some of the many reasons for price hike. A lot of factors come into play when it comes changing fuel prices. It is important to understand the basic reasons so that you can plan accordingly. Apart from that, taking a good care of your vehicle is also essential for keeping the engine efficient. Efficient fuel consumption will help you reduce your overall cost.
Smith Lubricants provides the best diesel fuel additive in Australia. With more than 15 years of experience in the field, we have developed a wide range of fuel products that can help you keep your engine in top-notch condition. Use the best fuel additive in Australia to increase performance, reduce cost and extend the life of your petrol and diesel engine.
Call us at 07 4653 1000 and Mobile 0427274152 for more information or expert advice from us.