With petrol prices falling, what else will be cheaper in 2015?
- Written by News Feature
Petrol Prices Continue to Fall: What Else Could be Cheaper in 2015?
Although oil is an everyday commodity, it’s all too easy to forget just how far-reaching its influence truly is. Now that prices have fallen to their lowest figures since 2009, consumers are about to be reminded all about said influence – in a good way. Yes, the change in oil price has brought about a predictable, yet very welcome, drop in prices for a few other commodities dependent on black gold -which could mean an even better 2015 for some households than previously thought. But exactly which commodities will we see cheapen this year?
Airfares
It goes without saying that lowered oil prices will affect transport costs, but it was thought highly unlikely that airlines would do the honourable thing and pass on savings to consumers. On the contrary, however: Virgin Australia and Qantas were reported to be the first Australian airlines to introduce a drop in airfares in line with oil prices. What does this mean for the personal finances of the average Australian? The door is now open to more affordable air travel, which could make all the difference when booking holidays or visiting relatives. Although the new price cut seems to only be for commercial passengers, there’s room for airlines to think about how they’ll proceed with import companies; with lower costs involved, the potential to make some goods more attainable is very much present.
Imported Cars
The economy is a fickle beast, always in flux and never settling for too long. These periods of change, however, can bring about greatly beneficial circumstances – and in 2015, this is especially true if you’re looking to buy an imported car. Due to the Yen favouring the Australian dollar, as well as new trade rules being introduced, some car brands have announced huge price slashes in 2015. The brands in question are Mazda, Subaru and Toyota, with all three revealing that the average customer could save $500 – some are due to save even more, and some a little less. And just think: a new car will be cheaper to run with those falling petrol prices…
Groceries
The final price drop is only a possibility, but could save Australian households hundreds of dollars. Due to lowering petrol prices, the cost to transport perishable groceries such as meat, fruit and vegetables is quite high, as only a daily delivery will suffice. Falling oil prices, however, improve the costs associated with transporting goods, leaving the potential for a saving to be passed on to consumers. This is where it gets tricky. Because the market is already so competitive, and retailers are constantly fighting to lower their prices to best one another, it really is up to the retailers whether or not they wish to pass on any savings. Of course, if the airlines are anything to go by, then a U-turn could very well happen in 2015, making day-to-day life a little easier for every Australian.
Outlook
If oil prices continue to fall throughout 2015, it’s fair to expect an even wider array of goods and services to be cheaper as the year progresses. This is exactly why falling oil prices are being hailed as a long-term positive. Overall, households have an increased spending power, giving the economy a dose of much needed stimulation. How long it will last, however, is not yet known; Saudi Arabia’s confidence even when oil is at $20 a barrel, means that prices could drop even further before any serious intervention. Until then, you’ve got some extra dollars to keep hold of!