There’s good news and bad news for motorists regarding petrol prices across Australia.

On one hand, there’s little doubt the trough of the price cycle is coming to an end – and motorist group RACQ has advised people now is the time to fill up before it’s too late.

“What we’re now seeing is prices starting to climb again as we enter the hiking phase of the cycle and move towards the expensive phase,” spokeswoman Nicky Haydon said on Tuesday.

But will consumers see the kind of prices – such as $2.20 a litre for unleaded – seen in the last peak in mid-March? Possibly not.

Graeme Bethune from energy advisory firm EnergyQuest said there are a number of factors that may mitigate prices, including the federal government’s halving of the fuel excise in last month’s budget.

“Governments globally and locally have been doing their best to stop (high prices),” he told 7NEWS.com.au.

“Internationally, governments, particularly the US government, have been releasing oil from their strategic reserves.

“Other countries like Australia have been cutting excises, which has been pretty effective.”

Another factor was the locking down of millions of people in China due to COVID-19, which has been driving down demand.

“Those three factors are dampeners on how high petrol prices might go,” said Bethune.

‘Significant reduction’

Fueltrac’s spokesman Geoff Trotter also believes prices will peak lower given the decision to cut the excise to 22 cents per litre.

“Given the significant reduction in the oil companies’ wholesale prices, we would expect that any new peak for unleaded should be a maximum of 195.9 cents per litre and 190.8 cents for diesel,” he said.

Extracted in full from: Australian petrol prices rising up expected to peak lower than approximately $2.20 in March | 7NEWS

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