"Chinatown"-Official media of Chinese Australians

Sorry, drivers friends, now it seems that the short and beautiful days of low fuel prices that you may have been used to will be gone forever.

A report by the market research organization "CommSec" shows that gasoline prices are facing the biggest quarterly price increase in the past 25 years.

In the week ending June 6, the average price of gasoline per liter was 14 Australian dollars, compared with only 1.42 Australian dollars at the beginning of the year.

"CommSec" chief economist Craig James said that the price increase means that the cost of filling a regular car is 21 Australian dollars more.

He said the impact of rising oil prices on household budgets depends on how people have faced lower oil prices in the past few months.

He said: "The biggest unknown is how many households have adjusted their spending budgets to the previous lower oil prices, and how many households still use the higher oil prices in 2014 as a reference standard."

"For most families, gasoline is an important part of their weekly expenditure."

"CommSec" estimates that gasoline prices have risen by 13.1% so far this quarter. Following this momentum, by the end of the month, this will be the largest quarterly price increase since December 1990.

In 2014, oil prices all over the world plummeted.

The increase in U.S. oil production triggered a price war between them and the Organization of the Petroleum Exporting Countries, which benefited motorists around the world.

However, since February this year, gasoline prices have begun to rebound. Although the current oil price is still lower than a year ago, the overall price has risen by about 30%.

Mr. James said that higher gasoline prices combined with a weak Australian dollar exchange rate are likely to cause people to be more stretched in spending.

This will also affect economic development from a broader perspective, and may even influence the Reserve Bank of Australia's decision to cut interest rates.

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News compiled from "Times"


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