Record-High LPG Prices Predicted Ahead Of Northern Hemisphere Winter Photo:
Trevor Collett | Dec, 10 2013 | 80 Comments

Record-high LPG prices are predicted around Australia throughout December, as the regional benchmark commodity price rose 33 percent at the start of the month.

The pinch was felt immediately in Sydney last week, as some sites added 16 cents-per-litre to their LPG pump prices overnight, rising from the high 70s to around 93.9 cents-per-litre.

Prices in Melbourne are tipped to follow suit, with some sites having already risen from 72.9 to 92.9 cents-per-litre.

The regional benchmark commodity price rose sharply in preparation for the expected spike in usage associated with winter in the northern hemisphere.

Already this month, record-low temperatures have been experienced throughout the US, which has also put upward pressure on LPG prices.

Victoria’s peak motoring group, the RACV, is urging motorists with LPG-powered vehicles to fill up now at the lowest price they can find.

RACV’s Michael Case also urged local LPG producers not to use the inflated regional benchmark commodity price as a reason to price-gouge.

“If local producers match this global price, they are taking advantage of the situation to maximise their own profits at the expense of consumers,” Mr Case said.

“They cannot use the excuse of increased LPG production costs to justify a 33 percent increase in the local commodity price, especially when the majority of our LPG is sourced locally. We are also concerned this new high price will risk damaging the reputation of LPG as a cheaper alternative fuel and potentially reduce the number of motorists who will use it now and into the future.”

Australia’s regional areas are also expected to see record-high LPG prices, with some areas already charging over $1 per-litre.

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