Australian retailers are poised to benefit to the tune of $3.2 billion over the next six months if the current low fuel prices remain in place, the National Retail Association said today.
NRA Chief Executive Officer Trevor Evans said with fuel prices falling below the $1 per litre mark in some parts of the country, households would save $350 by June 30, compared with the 2014/15 national average price of $136.5 per litre.
This would result in a national saving of up to $3.192 billion, according to research produce by the NRA.
Mr Evans said this would put additional money in the pockets of consumers, allowing them to increase spending on discretionary items rather than vehicle running costs.
“Based on these numbers, we expect to see a boost to retail turnover of up to 1.1 per cent,” Mr Evans said.
“One-dollar fuel means an average of $350 back in the pockets of households, and potentially a $3b boost to the retail sector over the next 6 months.
“So lower fuel prices aren’t just good news for motorists. They are good news for retailers and the hundreds of thousands of Australians who work in the retail sector.”
Estimated National Savings (Jan-Jun 2016) from lower fuel prices
@130c – $568m
@120c – $1,443m
@110c – $2,317m
@100c – $3,192m
Average savings per household (Jan-Jun 2016)
@130c – $62.50
@120c – $158.66
@110c – $254.81
@100c – $350.97
Additional growth in retail spending between 2015/16 and 2014/15
@130c – 0.2%
@120c – 0.5%
@110c – 0.6%
@100c – 1.1%
The National Retail Association is Australia’s largest and most diverse retail industry organisation, and has been representing the interests of the retail, fast food and broader service sector for almost 100 years.
To arrange an interview with Trevor Evans, call the NRA’s media unit on 07 3240 0163.