Hello and welcome to the March edition of the MotorMouth Newsletter.

Over the past few weeks, motorists throughout Australia have experienced the highest fuel prices since October / November 2004, and expectations are they will continue to rise. This month’s newsletter will focus on the rising cost of fuel and what we can do the save on the price of petrol.

Why are fuel prices so high?

Petrol prices have increased in response to the rising price of crude oil. From mid February, crude oil prices have risen steadily and on Thursday 17 March, oil prices rose to an all time high, reaching US $56.46 a barrel. Previously the highest recorded price for crude per barrel was US$55.50 in October 2004.

Although oil prices have reached an all time high, according to BBC News, crude oil prices would need to reach US$90 to rise above the 1980 price in inflation-adjusted terms. (http://news.bbc.co.uk/1/hi/business/4357245.stm).

How does the price of crude oil affect Australian petrol prices?

Typically a rise of $1.00 US per barrel impacts Australian pump prices by about 1 cent per litre for petrol. For those interested, the calculation is listed below:

1. Take the price quoted as US $56.00 per barrel for WTI
2. Translate price that into Australian dollars: 56 times current exchange rate (1 USD = 1.2633 AUD / 1 AUD = 0.7916 USD) = $70.74 AUS per barrel
3. Then calculate the number of litres in a barrel: 1 barrel = 158.987146 litres
4. Then divide the cost per barrel in Australian dollars by the number of litres in barrel to determine the cost per litre for crude oil: $70.74 divided by 158.987146 = 0.4449 or about 44.49 cents AUS per litre for the crude oil. If US$57 = $72.00 AUS per barrel = 45.28 cents AUS per litre for the crude oil.

It normally takes about two weeks for the rise in oil prices to affect the price of petrol at the pump, so it is likely that fuel prices will continue to rise over the next two weeks, and continue to rise as long as oil prices are increasing.

Why are oil prices increasing?

The general explanation given for the increase in oil prices is that the worldwide demand for oil is exceeding supply. Some analysts have predicted that demand will continue to grow throughout the year with requirements for oil particularly strong in the US and China.

How do current fuel prices compare to prices this time last year?

The below charts are a comparison between 2004 and 2005 Unleaded and Diesel prices in the period leading up to the Easter holidays.

What can motorists do to cut costs at the pump?

During times of high petrol prices, MotorMouth suggests that motorists purchase petrol wisely and take advantage of our free online services. Savings can be made by looking around for the best fuel price in your area and that is specifically what our services are designed to help motorists do. There are also a number of tried and tested fuel saving tips that if followed can definitely help reduce fuel expenditure, and therefore the weekly cost of fuel.

To refresh your memory, here are the Top 10 MotorMouth Fuel Saving Tips:

1. Log into to MotorMouth and search for the cheapest fuel in your area. If one of the cheapest stations in your area happens to be a station that accepts fuel discount dockets, that’s great! If not, find the cheapest station in your area. Also take advantage of MotorMouth’s personalised daily email alert services and keep up to speed on what’s happening with fuel in your suburb and city.
2. When prices are cheap, fill up your tank with as much as you can possibly afford.
3. Don't wait until the fuel tank is empty before you buy petrol. If you do, you will find yourself at the mercy of the fuel prices. Fill up more often so you can buy at the best price. If the prices are high and you really need fuel, only spend say $20.
4. Don't carry unnecessary loads around in the car. Carrying around heavy materials that you're not using, for example golf clubs, just wastes fuel.
5. When sitting at a set of traffic lights or in traffic for an extended length of time, put your car into neutral or park. This can save a significant amount of fuel.
6. Always try to accelerate gradually and steadily rather than putting the foot down hard, taking it off quickly and then having to brake to stop from running into the car in front. This not only saves fuel but also makes your brakes last longer!
7. Reduce your general driving speed and you will reduce your expenditure on fuel.
8. Clean air filters regularly. The air filter prevents dust from fouling the engine. Dust causes rapid wear of engine components and increases fuel use.
9. Keep you car as aerodynamic as possible. For example, if you are not using your roof rack, remove it from your car.
10. Service and tune your car at least once a year and also check your tyre pressures at least once a month. This will help reduce fuel consumption.

In other news, check out our new Open Your MotorMouth Competition section on the MotorMouth website and see what’s on the minds of MotorMouth users from around the country. This month’s winner has won two fabulous books from QBD – The Bookshop.

Until next month, happy motoring!

Bernadette Murray
Marketing Manager - MotorMouth
bmurraymotormouth.com.au 

This month's winner is Carol from Millmerran Carol's entry - Changing a Tyre without Macho Man "This is a great idea for the ladies (or weak men). When you get that flat or have to change a tyre have a hollow pipe that is around 60-75cm long that can fit over the tyre spanner . It gives extra leverage power for those hard to undo wheel nuts and you don't have to wait for the macho man to stop and give you a hand and it usually fits comfortably in the wheel well along with the jack etc." Congratulations Carol! Your prize will be sent out to you shortly.

EMAIL IN AND WIN!

Do you have an opinion or comment about a motoring or fuel related issue or story you’d like to share with your MotorMouth users from around the country? If so, send through your contribution in 200 words or less and you could win a prize! Your entry can be positive or negative (but of course not rude). The person whose comment is deemed most interesting each month will be awarded a book (or series of books) to the value of $50 from QBD The Bookshop.

All valid entries will be posted on the Past Entries section of the website so everyone can see what’s on the minds of Australian motorists. So what are you waiting for? Send through your contribution. Remember to add your name, address and phone number to your entry so we can notify you if you are chosen as our winner and send you your prize. Please note, only users who are signed up to receive the MotorMouth Newsletter can win the competition.

Damien Reid, our guest editor, with more fascinating news on the Fuel and Auto front.
Road Test: Honda's Hybrid Civic
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Volvo Takes On The Greenhouse Issue
Despite the fact it's been nearly 20 years since lead started being phased out of petrol, the world's car population is still emitting tonnes of lead into the atmosphere each year through discarded wheel weights. Swapping from lead to zinc wheel weights is just one area where Volvo Car Corporation is looking to minimise the impact of motor vehicles on the environment
[Read more]

New Car Reviews proudly supplied by News Limited.
Mazda6 MPS is priced for action
FIVE grand has been blown off the starting price of Mazda's turbocharged super sedan – the all-wheel-drive Mazda6 MPS
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Price cut makes Hyundai's shark tastier
Hyundai's Tiburon sports coupe is a good looking beast, made better earlier this year with enhancements that build on the "shark" styling theme. Tiburon is Spanish for shark so the link is easy to make especially now there are prominent "gills" in the 'guards aft of the front wheels and a "gaping maw" front air intake
[Read more]

The average, lowest and the highest Unleaded prices for last month in each city were:

The price leading service stations for each city last month were:

Brisbane	Service Station Freedom Fuels Address Brisbane Terrace Suburb Goodna Average Price for month 87.6
Sydney	Service Station Speedway Address corner Smithfield Road & Victoria Street Suburb Smithfield Average Price for month 91.1
Melbourne	Service Station Caltex/Safeway Address corner Bambra Road & Glenhuntly Road Suburb Caulfield Average Price for month 94.8
Adelaide	Service Station Southern Cross Address corner O.G. Road & Yaralin Avenue Suburb Klemzig Average Price for month 97.4
Perth	Service Station Caltex/Woolworths Address 372 Grand Promenade, corner Lowick Road Suburb Daniella Average Price for month 96.0

The average, lowest and the highest Diesel prices for last month in each city were:

The price leading service stations for each city last month were:

Brisbane	Service Station Matilda Address corner Oxley Road & Long Street Suburb Graceville Average Price for month 92.1
Sydney	Service Station Freedom Fuels Address Glossop Street Suburb St Marys Average Price for month 99.9
Melbourne	Service Station Independent Address corner Napier Street & Cowper Street Suburb Footscray Average Price for month 101.3
Adelaide	Service Station Southern Cross Address corner O.G. Road & Yaralin Avenue Suburb Klemzig Average Price for month 101.8
Perth	Service Station Oasis Address Nicholson Road Suburb Langford Average Price for month 102.0

MotorMouth is committed to helping Australian motorists get a better deal on fuel by providing them with free and easily accessible information on fuel prices.

Reproduction of the whole or part of this email constitutes an infringement of copyright. All information published in this email is intended to be used for your personal use only and can not be used for commercial use without the prior written consent of MotorMouth Pty Ltd. For data sales enquiries please contact salesmotormouth.com.au