How does the value of the Australian dollar affect fuel prices?

1 ANSWERS

1. Guest9098
   

   The largest components of the price we pay for fuel are the international benchmark price and taxes. As the benchmark price of petrol is priced in US dollars ($US), changes in the value of the Australian dollar ($A) against the $US affects the domestic price of petrol. So depending on what is happening with the benchmark price, changes in the $A can make petrol prices rise or fall.
   It is also important to remember that other influences on international and domestic prices also need to be accounted for. The value of the $A is only one of many factors that affect petrol prices. Other factors (such as changes in the levels of local competition) may also influence petrol prices.

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