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Petrol prices predicted to fall

Petrol prices have been predicted to fall below $1 per litre.

Petrol prices across Sydney have begun to fall and are expected to fall below a $1 per litre according to NRMA spokesperson Peter Khoury.

Mr Khoury said with pries expected to drop, motorists should hold off on filling up because lower prices are on their way.

In a conversation with C&I, Mr Khoury said: “In Sydney they’ve started to fall, they’ve fallen about 10 cents already and they should continue to fall for at least another 10 cents.”

In parts of regional NSW, prices usually fluctuate a lot slower depending on how far out of Sydney they are.

“Regional prices move a lot more slowly and regional centres don’t have the kind of fluctuation cycles that we have in Sydney, so regional prices won’t come down the same way they have in Sydney, but they also won’t go up,” Mr Khoury said.

The price drop is a direct correlation to the specific factors that determine petrol pricing including oil prices and the strength of the Australian dollar.

Mr Khoury said the Australian dollar is currently trading at just under 80 cents and the stronger the dollar is, the better it is for motorists.

“World oil prices have fallen after spiking earlier this year and the reason they spiked…is that the Organisation of the Petroleum Exporting Countries (OPEC) agreed to cut production which put up the price,” he said.

“So that process has now played out and those cuts have been reduced and there’s an oversupply or there’s more oil on the market and because of that oversupply prices have come down.”

Closer to home, trends have suggested that prices should continue to fall as Australian price cycles in capital cities are also a determining factor.

“In the short term they will go back up according to the price cycle but they won’t go any higher than they previously have in this cycle, beyond the cycle there should be no increase and right now they should continue to fall in accordance with the cycle,” Mr Khoury said.

 

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