IP Indicator Series - Definitions

The IP Indicator Series is a national indicator of product import parity values for petrol and diesel across Australia . This series is computed in strict conformity with the publicly documented computation procedures formerly adopted by the ACCC in its Intervention Price Series. The series is an indicator of national average product import parity values on a notional delivered wholesale basis.

IP Imported Product Prices
Product prices for the IP Indicator Series are based on a 7-working day rolling average of spot price assessments for the Singapore market, one day prior to the date of publication.

IP Exchange Rate (US$ / $A)
Exchange rates used for the IP Indicator Series are the Reserve Bank $USD/$AUD exchange rates, using a 7-working day rolling average. The 7-working day rolling average is for the seven working days which precede by one working day the date of publication. In the case of a public holiday in Singapore or Australia , during which daily quotation values are unobtainable, the average for the period of reference will be the daily averages excluding the value for such days..

International Shipping Costs
Shipping rates incorporated into the IP Indicator formula are a weighted average of the respective Worldscale shipping rates applicable for voyages from Singapore to each of the Australian mainland ports. The shipping rate is based on a 35,000 MR tanker. The annual Worldscale rate is adjusted on a daily basis using the Platts PWS assessment.

National Landed Price
These are indicators of landed product costs for the respective product grades derived from the 7-working day rolling average values for Singapore cargo prices; the derived average international shipping freight rates to the principal Australian ports; an insurance and ocean loss factor; Australian port and wharfage costs; and, the US / Australia exchange rate.

National IP Indicator
This refers to the into-terminal Import Parity Indicator Price, plus Commonwealth and State-based Excise rates effective as at the date of publication, plus the GST component.

Federal Excise Rate
Petroleum product excise is levied on petrol, distillate and other petroleum products, at different rates by the Commonwealth Government. Excise rates are subject to an adjustment in February and August each year to take account of CPI movements during the preceding six months.

State-based Excise Rates
State-based excise, formerly also known as the State Fuel Levy , was abolished with the implementation of the New Tax System which came into force on 1 July 2000 . The Federal excise was subsequently altered to absorb the impact of this change in consideration of the final effect of the 10% Goods and Services Tax on fuel prices. The 10% GST applies to all purchases of fuel.

GST
The Goods and Services Tax (GST), introduced in July 2000 applies a 10% tax on oil products. The seller of oil is required to collect this tax and the final price of the product reflects this imposition as an additional 10% on the prior price.