The costs of running a vehicle are a series of constants. Maintenance, registration renewals, and not to mention, the cost of fuel. Petrol, diesel or even powering an electric car – it all adds up in the end. When you take out a novated lease to buy a vehicle, all these costs can be wrapped up in a pre-tax payment that sees you save on things like GST.
That's why any drop in the price of fuel will be more than welcome for Australians on the road – which means you'll love what the latest consumer price index (CPI) has to say.
When the cost of living doesn't rise
The CPI is released every month by the Australian Bureau of Statistics (ABS), tracking changes in how much we have to pay for everything from shoes to mortgages. Over the course of January 2016, the overall index went up by 0.4 per cent. That's because of strong hikes in the cost of tobacco and holidaying (both travel and accommodation).
However, fuel prices lead the charge at the other end of the scale, going down by 5.7 per cent. It's also the fourth month in a row that the fuel index has dropped, showing that we're sitting in a pretty good time for filling up the car.
And while the fuel cycle undoubtedly goes up and down every month, there's a nice trend for road users too in the long term: fuel has gone down 8.7 per cent in the last 12 months. That's undoubtedly great news, but where does it go from here?
State of the states
Fuel prices are also vastly different between states and territories, something which the Royal Automobile Club of Queensland (RACQ) has been quite vocal about. When the body revealed that the state's fuel price was at its lowest annual average point since 2010, spokesperson Renee Smith pointed out a few issues.
Fuel prices are also vastly different between states and territories.
"We're still paying more than motorists in Sydney, Melbourne, Adelaide and Perth, and have been since 2010," she noted.
"Brisbane is still dominated by a few major players and lacks the aggressive discounting seen in many other capital cities."
How are the fuel costs where you are? While it seems like they're going down across the board, there are sure to be pockets where it hurts your wallet. No matter what your costs are in this regard, a novated lease can help you manage them efficiently. Get in touch with our team to find out more!