Seasonal patterns in daily prices of unleaded petrol across Australia
This study addresses a very significant policy issue not previously examined at a disaggregated level for Australia by identifying on which day(s) petrol is more expensive and in which locations discount days are non-existent. After conducting a time series analysis of the day of the week effect in retail prices of unleaded petrol in 114 locations across Australia (Jan 2005 to Apr 2012), it is observed that prices mostly peak on Thursday/Friday and then decline until they hit their cyclical trough mainly on Sunday/Tuesday. However, these daily differences are only statistically significant in capital cities or large regional centres. A cross-sectional analysis of the mean prices during the period Nov 2007 to Feb 2012 shows that (a) in remote and less populous locations, where sales are presumably limited and overhead costs are high, petrol is more expensive; (b) petrol generally costs more in places which exhibit less price variability. The disaggregated and location-specific results can increase our understanding of Australia’s retail petrol market and can be beneficial to motorists as well as various government and non-government organisations such as the ACCC (Australian Competition and Consumer Commission), AAA (Australian Automobile Association) and FuelWatch.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sarath Delpachitra & Diana Beal, 2002. "Petrol Prices Disparity: Did The Removal Of Price Surveillance Create Price Competition?," Economic Papers, The Economic Society of Australia, vol. 21(1), pages 56-65, 03.
- Zhongmin Wang, 2009. "Station level gasoline demand in an Australian market with regular price cycles ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 467-483, October.
- Valadkhani, Abbas, 2010. "Modelling the Price of Unleaded Petrol in Australia’s Capital Cities," MPRA Paper 50396, University Library of Munich, Germany.
- Zhongmin Wang, 2008. "Collusive Communication and Pricing Coordination in a Retail Gasoline Market," Review of Industrial Organization, Springer, vol. 32(1), pages 35-52, February.
- Abbas Valadkhani & William F. Mitchell, 2002. "Assessing the Impact of Changes in Petroleum Prices on Inflation and Household Expenditures in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(2), pages 122-132.
- M. J. Fields, 1931. "Stock Prices: A Problem in Verification," The Journal of Business, University of Chicago Press, vol. 4, pages 415.
- Mitchell, Jason D & Lian Ong, Li & Izan, H.Y, 2000. "Idiosyncrasies in Australian petrol price behaviour: evidence of seasonalities," Energy Policy, Elsevier, vol. 28(4), pages 243-258, April.
- Higgins, Eric James & Peterson, David R, 1999. "Day-of-the-Week Autocorrelations, Cross-Autocorrelations, and the Weekend Phenomenon," The Financial Review, Eastern Finance Association, vol. 34(4), pages 159-70, November.
- Kirchgassner, Gebhard & Kubler, Knut, 1992. "Symmetric or asymmetric price adjustments in the oil market : An empirical analysis of the relations between international and domestic prices in the Federal Republic of Germany, 1972-1989," Energy Economics, Elsevier, vol. 14(3), pages 171-185, July.
- Zhongmin Wang, 2009. "(Mixed) Strategy in Oligopoly Pricing: Evidence from Gasoline Price Cycles Before and Under a Timing Regulation," Journal of Political Economy, University of Chicago Press, vol. 117(6), pages 987-1030, December.
- Wills-Johnson, Nick & Bloch, Harry, 2010. "A simple spatial model for Edgeworth Cycles," Economics Letters, Elsevier, vol. 108(3), pages 334-336, September.
- Maskin, Eric & Tirole, Jean, 1988. "A Theory of Dynamic Oligopoly, II: Price Competition, Kinked Demand Curves, and Edgeworth Cycles," Econometrica, Econometric Society, vol. 56(3), pages 571-99, May.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:56:y:2013:i:c:p:720-731. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.