Good news! Petrol prices are expected to come down

Australian petrol is expected to get cheaper over the next coming weeks, with the NRMA saying petrol prices could fall by as much as four cents per litre thanks to a decision by the Organisation of Petroleum Exporting Countries (OPEC) to increase production volumes.

“With OPEC finally agreeing to lift oil production, there is some degree of confidence that prices will fall,” NRMA spokesman Peter Khoury said, The Australian reports.

However, Khoury said those stuck in lockdown — residents in New South Wales, Victoria and South Australia — will see little changes.

“Unfortunately, Australia is at the mercy of global trading conditions, which means the price at the pump locally is not impacted by falls in demand for fuel locally to the lockdowns,” he explained.

According to The Australian, Khoury went on to say that as long as the Australian dollar remains at a stable rate compared with the US currency, prices should continue to fall.

“Current prices at the bowser should fall by as much as four cents per litre,” he said. “And with OPEC finally agreeing to lift oil production, there is some degree of confidence that those prices will fall further.”

It comes after a recent report by the Australian Competition and Consumer Commission (ACCC) found ditching major petrol giants like Shell, BP and Caltex in favour of the smaller petrol retailers could get you more bang for your buck.

According to the report, which was released last month, motorists who switch to independent petrol retailers stand to save nearly half a billion dollars in savings.

The average range between the highest and lowest-priced major petrol retailer across the five largest capital cities increased from 8.4 cents per litre (cpl) in 2019 to 11.4 cents per litre in 2020, with data showing that independent chains were “consistently the lowest-priced” petrol retailers across major cities.

The report showed that motorists in Sydney could save up to $445 a year if they switched to the lowest-priced independent chain rather than the highest-priced major retailer, while Melbournians could save $317, and Brisbane residents as much as $174.

Rod Sims, ACCC chair, said at the time that shopping at cheaper fuel stations doesn’t mean forgoing quality.

“The range of petrol prices available to most Australian motorists means the potential savings from filling up at one of the cheaper retailers are very significant,” he said. “We often hear that all petrol prices are the same but this report shows that people living in capital cities do have choice about where they get their fuel, and how much they pay for it.

“Consumers should bear in mind that regular unleaded petrol sold in Australia typically comes from the same refineries or import terminals, and there are minimum quality standards that all retailers are required to adhere to. This means that motorists are getting petrol of a similar quality regardless of where they fill up.”