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Petrol plummets to $1.08 in Adelaide as coronavirus oil price war hits

Petrol has been spotted for less than $1.10 per litre in Adelaide’s western suburbs, with experts predicting the price at the bowser could drop even lower in coming weeks amid the coronavirus pandemic.

A Mobil petrol station on Henley Beach Road advertised fuel for $1.08, the lowest price in recent memory.

However, not all retailers are passing on the price plummet just yet, with an OTR servo just down the road still selling for $1.59.

China shutting down due to coronavirus has drastically dented demand, and a price war between Saudi Arabia and Russia has seen the biggest crash in global oil prices in decades.

Peter Khoury, from the NRMA, says coronavirus has created a perfect storm for petrol prices.

“Globally, this is probably the only good news amid the outbreak,” Khoury said.

“You’ve got this rather significant price war between the Russians and the Saudis over oil production.”

Khoury says the only thing working against price drops is the Aussie dollar.

Prices could drop as low $1, depending on price cycles and whether the oil war continues.

 

Extracted from 7News

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