Petrol prices have dropped to their lowest level for 13 months, with experts predicting they could fall further to around $1 per litre.
In Brisbane, the average bowser price has reached its lowest mark since last February, hovering around $1.22 a litre, but motorists can pick up cheaper deals if they shop around.
The impact of the coronavirus had already put oil prices and other energy stocks under pressure before disagreement between two to the world’s biggest crude oil producers.
After Saudi Arabia and Russia failed to agree on oil production targets over the weekend, a price war started.
Brent crude futures, which had traded as high as US$65 a barrel as recently as January, plunged from US$45 a barrel on Friday to around US$32 yesterday.
It could mean good news for Aussie motorists, with CommSec chief economist Craig James predicting petrol prices could fall to around the $1 per litre mark.
“The ready-reckoner is that every US$1 a barrel fall in the oil price leads to a 1.0 cent fall at the petrol bowser. Provided the Aussie dollar is reasonably stable, motorists may be able to look forward to filling up for near $1 a litre,” he wrote in a research note.
Meanwhile, Treasurer Josh Frydenberg has urged the consumer watchdog to ensure lower oil prices are passed on at petrol pumps.
Mr Frydenberg said he had spoken to Australian Competition and Consumer Commission (ACCC) chair Rod Sims yesterday about the organisation’s role in monitoring prices at the bowser.
“I wanted to re-emphasise to the ACCC the importance of holding the oil retailers to account in ensuring that Australians get the benefit from the lower oil prices,” Mr Frydenberg said.
The watchdog will also call out energy companies that don’t pass on price reductions.
Shadow treasurer Jim Chalmers said retailers should not be taking advantage of Australians doing it tough under current economic conditions.
– Reported with AAP
Extracted from 9News