John Carney, 11 November 2015

Motorists across Australia will be lining up to fill their petrol tanks over the next week as petrol prices will drastically drop.

Petrol prices will get as low as $1.09 cents a litre in Sydney and Melbourne over the coming week, a huge drop from the previous average of $1.33 in both cities.

It’s a similar drop in price across the country with Brisbane’s average price set to be at $1.11 – three cents lower than the wholesale price which is at $1.14. Adelaide is projected to be at $1.19 a litre next week, and Perth is also set to drop drastically to around the same price.

The major cities tend to follow each other’s prices so they will always generally get to around the same level.

‘It is true that prices are falling, and this is something that will happen nationally,’ Peter Khoury, head of media for the National Roads and Motorists’ Association told Daily Mail Australia.

‘The $1.12 cents per litre available on the likes of the Sunshine Coast is a pretty good indication of how the prices will be in Sydney very soon.

‘The average price now in Sydney is $1.33, but that’s going to fall considerably next week where the average will get down to at least a $1.16 – so $1.09 prices will definitely be scattered throughout Sydney by mid-next week.’

If the average is $1.16 in Sydney it’ll mean that many of the independent service stations will be even cheaper than that, because the independents are driving the prices down to make them more competitive.

‘The heavy discounting is down to the independent service stations chasing volume,’ Mr Khoury said.

‘It’s the independent service stations that are consistently the cheapest and driving the prices lower. It’ll be major players like Caltex and BP that’ll be the most expensive.

‘The independents will drop their prices first and keep them low the longest. All they’ve got to compete with is price as they don’t have the same budgets as the big companies.

‘Regional prices will be different because there’s not as much competition – Darwin and Canberra will always be higher.’

Extracted in full from the Daily Mail.