LPG the largest component of the price you pay is represented by the international benchmark price. Benchmark prices for fuels sold in Australia are determined on Saudi Contract prices and there are many factors that go into determining the price of LPG in Australian markets.
The international benchmark for the cost of Australian LPG is the Saudi Aramco Contract Price, also commonly called the Saudi Contract price (CP) . Changes to this price normally happens once a month after review of procurement traders who we are in contact with on a regular basis however a significant world even can see that we look at these prices on a more regular basis as world events can bring volatility to all fuel prices .
Changes in international prices can take around two- three weeks to work their way through the supply chain in Australian cities and sometimes can be longer to impact some regional areas dependent on supply points and reserves . LPG prices in Australia are tracked against the international benchmark Saudi Contract price and supply and demand as well as world events similar to fuel prices.
The chart below shows how the price of petrol in the five largest cities Sydney, Melbourne, Brisbane, Adelaide and Perth has been tracking against the international benchmark price over the last 365 days so we can determine when our traders buy and sell onto the commodities markets for our LPG portfolio. We are a highly sophisticated in the way we operate and a cut above the rest of our competitors when it comes to commodities and strategy moving forward.
We track and monitor world markets for additional supply and demand forecasts which will naturally flow onto our commodity prices and risk analysis is always looked at by our traders .