Canberra’s petrol prices have fallen less than half a cent in the past week, despite major capital cities recording falls of between 5 and 20 cents.
It comes as fuel could drop to $1 a litre in the major capital cities but Canberra is likely to miss out.
The average petrol price in Canberra is $1.44 per litre according to the Australian Institute of Petroleum, which released its weekly petrol price report on Tuesday.
This is a fall of 0.4 cents on the previous week, in the same period Sydney prices fell 7.3 cents a litre – the average price for fuel in the harbour city is $125.4 per litre.
Global oil prices are set to decline as both Saudi Arabia and Russia would lift oil output. This is on the back of an disagreement between their respective coalitions related to oil.
CommSec chief economist Craig James said fuel prices could fall to $1 a litre in the five major Australian capital cities – Sydney, Melbourne, Brisbane, Adelaide and Perth.
In the past week, the average price fall for the five capital cities was 10.6 cents, figures showed.
But Mr James said Canberra would not see the same drop due to the fact the nation’s capital does not follow the same discounting cycle as the five cities.
“Traditionally Canberra prices are a little bit above the major capital cities,” he said.
“Prices in Canberra tend to be a bit more stable than what we see in other capital cities because the discounting cycle does not apply.”
This had frustrated some motorists in Canberra. Sally Wood had filled her car up on Tuesday afternoon.
“Not really fair, it should be everywhere not just the capital cities,” she said.
Another motorist who filled their car on Tuesday, Anthony Bekavac said he did not really take notice of petrol prices he just put fuel in his car when needed.
Caltex Independent Fyshwick manager Scott Desmond said Canberra fuel prices in Canberra are always higher for a number of reasons, but he said prices would fall.
“Our prices are always a little more expensive due to freight costs, the general costs and our rates are higher,” he said, “the prices will definitely keep coming down, I wouldn’t be shocked if they come down another 5 or 10 cents in the next week or two.”
Mr Desmond said Fyshwick tended to be a bit cheaper than other Canberra suburbs. A drive around the suburb showed fuel was up to 16 cents cheaper then the average for the territory.
Demand for crude oil has fallen due to the COVID-19 outbreak as there is a reduction in global travel. The Saudi Arabia and Russia agreement ceased after a meeting about the demand in the wake of the outbreak.
“To some extent we can take it back to the coronavirus,” Mr James said.
“As to whether it’s a more strategic decision is a case in point as well.”
Extracted from Canberra Times