Petrol prices nosedived last week, much to the delight of frugal Australians across the country.
And while no one could be heard chanting “Free petrol for all my friends!” it was the largest drop in petrol prices in the past 10 months.
Data from the Australian Institute of Petroleum showed the national average pump price of unleaded petrol fell by a whopping 4.5 cents to 123.5c per litre; according to Commsec, that’s the lowest it’s been in seven months.
Metropolitan centres across Australia enjoyed the biggest plummet with prices falling by 5.8c to 121.5c/litre while regional prices also fell by a considerably smaller 1.6 cents to 127.7 cents/litre.
Sydney, Brisbane and Adelaide were the best off, with all recording price reductions of more than 7c/litre.
However, according to analysis from Motormouth, some stations in Sydney and Adelaide are selling regular unleaded at around 103c to 104c/litre implying that some operators are presently selling petrol for a loss as the wholesale cost is sitting around 107c/litre.
In fact, all eight of Australia’s capital cities logged a price drop with Craig James, Commsec’s chief economist, predicting even lower prices could arrive in the weeks ahead.
“The wholesale price in Australia, also known as the terminal gate price, is at a seven-month low, down by 9c a litre in the past month,” James said.
“Pump prices have only fallen 7c a litre so far from recent highs, so prices have scope to ease a little further, especially in Canberra, Darwin and Hobart.”
Even diesel petrol’s national average price enjoyed a small dip by 0.5c to 127.4c/litre over the week.
The national average Australian price for diesel petrol also fell, although by a much smaller 0.5 cents to 127.4 cents per litre over the week.
James credits the recent declines to crashing crude oil prices.
“OPEC oil nations are trying to support the price of crude oil near $50USD a barrel by restraining production, but the efforts are being thwarted by higher US production,” James wrote yesterday.
“At present though crude oil prices are falling due to over-supplied production, thus benefiting consumers.”
Despite the OPEC’s (Organisation of the Petroleum Exporting Countries) struggle, the Australian consumer is set to gain with James estimating motorists are saving around $8-$9 a week with these current prices compared to the cost of filling up a month ago.
And while it’s not a lot, it can still go a long way for thrifty Aussies.