While budget-minded grey nomads can trim their costs by free camping more often, or catching more fish, it is very difficult to dodge the biggest cost of them all … fuel.
Barring a still impractical solar-powered adventure around the country, we all still need to keep filling the tank in order to keep the wheels rolling. We can travel more slowly to make the weekly hit lower, but the sad fact is that sooner or later we need to cough up at the bowser if we want to see all that we want to see.
With diesel still considered to be the fuel of the bush, many grey nomads can expect yet more pain at the roadhouse following China’s decision to ban exports of the fuel in order to conserve domestic supplies.
The Sydney Morning Herald reports that although Australia doesn’t import diesel from China, the decision to restrict exports will probably drive up demand for the fuel on global markets, potentially lifting the diesel price here.
“There is potential for this to affect our diesel prices, not due to direct imports from China but the influence that China must have on world prices,” RACV general manager of public policy Brian Negus told the newspaper.
Australian Institute of Petroleum data shows the retail price of diesel rose steadily from about $1.40 a litre in mid-February to $1.56 a litre in the past week. The SMH says that, in the same period, the price of unleaded petrol rose from a weekly cycle of $1.34-$1.38 a litre to $1.44-$1.50 a litre.
Ironically, China’s announcement came as the price of oil, which has risen steadily since the beginning of 2009, fell on concerns the global recovery may be running out of steam and commodities have become overpriced.
However, relief from rising prices may be temporary. Recent flooding in the US is expected to curtail refining capacity, helping to keep global oil prices high.
Demand and costs for diesel have risen in recent years, with data from the Federal Chamber of Automotive Industries showing the share of diesel-burning vehicles rose from 13.8 per cent to 25.2 per cent from 2006 to 2010, while petrol vehicles fell from 84.3 per cent of the market to 73 per cent.
