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Do retail petrol prices rise more rapidly than they fall in Australia’s capital cities?
Faculty of Business - Economics Working Papers
  • Abbas Valadkhani, University of Wollongong
Publication Date
1-1-2009
Publication Details
Valadkhani, A, Do retail petrol prices rise more rapidly than they fall in Australia’s capital cities?, Working Paper 09-08, Department of Economics, University of Wollongong, 2009, 28p.
Abstract
This paper examines the long-run and short-run determinants of unleaded petrol prices in Australia’s capital cities using monthly data to test whether prices respond asymmetrically to external shocks. In the long-run petrol prices are mainly determined by the Tapis crude oil and Singapore petrol prices. There is some evidence of asymmetric price adjustments in the short-run since petrol price increases have been mostly passed on to the consumer faster than price decreases in four capital cities. One can thus argue that there are a significant degree of market inefficiency and/or collusion, requiring closer government price monitoring and scrutiny.
Citation Information
Abbas Valadkhani. "Do retail petrol prices rise more rapidly than they fall in Australia’s capital cities?" (2009)
Available at: http://works.bepress.com/abbas/52/