Diesel price gap at record high as coronavirus sees global demand plunge

There has been widespread scrutiny of increasing price margins on unleaded petrol amid a coronavirus-induced global price plummet, but new analysis suggests those driving diesel cars are getting an even worse deal.

Diesel price gap at record high as coronavirus sees global demand plunge

There has been widespread scrutiny of increasing price margins on unleaded petrol amid a coronavirus-induced global price plummet, but new analysis suggests those driving diesel cars are getting an even worse deal.

New research published by the NRMA reveals the gap between diesel's wholesale price and prices at the bowser has almost doubled since last year.

The gap between wholesale and retail prices for diesel in 2020 is now 19.6 centres per litre – among the highest figures ever recorded. This is an increase from an average of 11.2 cents per litre last year.

Australia's international benchmark price for diesel fell to almost a quarter of its pre-pandemic value amid global COVID-19 shutdowns and less demand from both industry and commuters.

From a high of $US83.86 a barrel, it plummeted to a low of $US22.92 a barrel, before rising to $US32.94 today.

In contrast, the average retail price of diesel has only fallen 33.8 cents per litre over the same period.

"Australia's economy runs on diesel so when average prices for diesel across Australia are higher than they should be – as has been the case throughout much of 2020 – the result is it costs more to do business and that cost is often passed on to the consumer," NRMA spokesperson Peter Khoury said.

"In addition, around 40 per cent of fuel sold to Australians at the bowser is diesel – it's a popular fuel among drivers. In just the same way that motorists have consistently been over-charged for petrol throughout the coronavirus, we have also been paying more for diesel."

He called on wholesalers to pass on cost savings to Australian businesses and consumers.

"Not nearly enough attention has been paid to the rising gap between wholesale and retail prices for diesel across Australia," he said.

"It's time for diesel prices to fall and fall fast."

Tasmanians are paying the most for their diesel, with an average price of 136.6 cents per litre, followed by 122.2 cents a litre in Darwin and 120.8 cents in Canberra.

Perth (118.6 cents/litre), Brisbane and Melbourne (118.5 cents/litre) follow, with the lowest average prices in Sydney (114.9 cents/litre), and Adelaide (109.4 cents/litre).

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Source : 9 News More   

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US weapons giant awarded $4b deal for missiles to Saudi Arabia

Aerospace and weapons manufacturing giant Boeing has been awarded contracts totally more than $4 billion to provide missiles to Saudi Arabia and other non-US governments.

US weapons giant awarded $4b deal for missiles to Saudi Arabia

Aerospace and weapons manufacturing giant Boeing has been awarded contracts totally more than $4 billion to provide missiles to Saudi Arabia and other non-US governments.

The Pentagon made the announcement today, saying Boeing would undertake to deliver more than 1000 missiles to the House of Saud.

One contract worth US$1.97 billion (A$3.06 billion) was for 650 air-to-surface missiles with a range of about 290km.

Another contract, worth US$657 million (A$1.02 billion) will see Boeing deliver more than 400 anti-ship missiles to Saudi Arabia, along with others to Brazil, Qatar and Thailand.

The delivery is set to be completed by 2028.

Boeing said in a statement the contract would restart their SLAM ER production line, which had gone dormant in 2008, France24 reported.

Manufacturing will take place in a number of locations across the US.

Source : 9 News More   

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