Petrol prices soared to shocking new highs last month but have since fallen sharply, giving a reprieve to frustrated motorists. Picture: Tait Schmaal
Petrol prices soared to shocking new highs last month but have since fallen sharply, giving a reprieve to frustrated motorists. Picture: Tait Schmaal

Petrol prices are plummeting

This time a month ago, petrol in Australia soared to its highest price in more than a decade, causing significant hip-pocket pain for motorists.

But the cost of filling up at bowsers has plummeted this week across the country, with an average reduction of seven cents per litres in the past week.

Compared to mid-October, which saw prices soar to shocking record highs, daily bowser prices have now fallen by up to 30 cents per litre on average in some capital cities.

Petrol price monitoring service Motor Mouth reported the current average cost of unleaded in Sydney is 133.2 cents today, compared to a high of 164.3 cents on October 19.

 

The daily fuel average in Brisbane hit 169.1 cents per litre in mid-October, reaching shocking new highs. Picture: Tait Schmaal
The daily fuel average in Brisbane hit 169.1 cents per litre in mid-October, reaching shocking new highs. Picture: Tait Schmaal

In Melbourne currently, the average cost of fuel is 142.8 cents - a significant reduction on the high of 167.2 cents on October 24.

Drivers in Brisbane are today enjoying an average per litre cost of 136.8 cents, down sharply on the October 11 high of 169.1 cents.

Data from the Australian Institute of Petroleum found the average national reduction this week was 6.7 cents to 149.4 cents per litre, representing the steepest decline in a decade.

 

Sharp reductions in petrol prices across Australia this week have delivered a welcome reprieve for motorists. Picture: AAP
Sharp reductions in petrol prices across Australia this week have delivered a welcome reprieve for motorists. Picture: AAP

The welcome relief is thanks to in large part to a significant softening in global crude oil prices and a modest recovery in the value of the Australian dollar.

Sanctions imposed in Iran in October also saw the supply of oil swell in recent weeks, helping to drive down prices.

Australia's wholesale petrol price is down by about 15 cents and economists expect further reductions over the next fortnight.

It means in the short-term at least, motorists can expect lower prices to remain - an average fill-up cost saving of about $18 per week compared to October.

But how long are lower prices likely to continue?

The outlook for the global oil market is uncertain, with major producers expected to dramatically cut production output by the end of the year.


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