Australian petrol prices approach $1 per litre

Petrol prices in Australia have plunged to a near 20-year-low thanks to the coronavirus pandemic.

According to new research released by comparethemarket.com.au this week, motorists across the country paid 11 cents less per litre for petrol in the March quarter, with an average cost of $1.38 a litre (CPL).

Driven by a fall in demand after millions of Australians were ordered to stop non-essential travel due to the coronavirus, residents in Sydney, Melbourne, Adelaide and Canberra have all witnessed lower petrol prices this week, researchers said.

“The good news is that motorists are starting to see price lows they last saw in the year 2000,” said household savings expert Abigail Koch.

“Motorists can expect petrol prices to keep falling across most of the country into the Easter weekend – with the only exception being Perth, where motorists can expect to see prices rise this week.

“Motorists are encouraged to shop around for cheaper prices but not to stray away from their local area in keeping with lock down rules.”

Canberra residents are currently paying the highest average petrol prices, with a quarterly average of 143cpl. Perth motorists paid the least over the quarter, at 132cpl.

The research encouraged motorists to do their research from home, with some metropolitan petrol prices dipping below 90 cents per litre for 91RON unleaded.

“The start of the second quarter of 2020 has seen price lows across global crude oil, petrol and diesel, not seen in nearly two decades,” said Koch.

“This is due to demand slowing from the effects of COVID-19 and the oil price war between Saudi Arabia and Russia, two of the three biggest oil producers in the world. Despite global oil prices falling, petrol retailers in Australia are selling far fewer volumes in this climate, making it harder to lower fuel prices. Motorists will see a wide dispersion of retail prices across most cities, making it difficult to find bargains at the bowser.”

Experts tip fuel prices to continue to fall in the future, with some analysts predicting Sydney, Melbourne and Brisbane averages to fall below $1 per litre within a fortnight as motorists stayed home and the fuel discounting cycle commenced.