Fuel Prices As Influential As Interest rates

15 Nov 2012| Posted by: Geoff Baldwin

For the average two car family a 10 cent increase in the price of fuel can affect the household budget as much as a .25 percent interest rate rise according to RE/MAX WA Managing Director, Geoff Baldwin. “Currently interest rates are trending down and all indications are that this will continue into 2013 however the other significant influence on major consumer buying decisions is the price of fuel”, Mr Baldwin said. “Fuel prices over the past 12 months have increased by around 10 to 15 cents per litre and this amounts to around an extra $700 to $1,000 more per year for the average family. “When it is considered that a .25 percent rise in interest rates based on the average mortgage is around the same amount there can be little argument that fuel prices can and do influence other areas of the economy. “The recent announcement by the ACCC of its intention to investigate possible price gouging by oil companies is a very welcome move in the right direction that will hopefully, over time, result in a fairer go for consumers”, Mr Baldwin said.