Petrol prices could fall to as low as $1 a litre as the impact of the coronavirus and oil price war rolls through the economy.
Prices are down to $1.17 a litre at some outlets in Brisbane, a level not seen since February last year.
The dramatic plunge has not been reflected statewide. Petrol in places like Rockhampton was still at $1.50 a litre. The RACQ said the average was about $1.22 on Monday evening.
CommSec said prices for crude were falling to the low $US30 mark.
“Lower oil prices represent good news for motorists. The ready reckoner is that every $US1 a barrel fall in the oil price leads to a 1 cent fall at the bowser,” Commsec said.
“Provided the Aussie dollar is reasonably stable, motorists may be able to look forward to filling up for near $1 a litre.”
The fall was on the back of a global plunge in oil prices of 30 per cent when talks on cutting supply between OPEC members collapsed.
Russia, which is not an OPEC member, refused to cut its supply which analysts said was a tactic aimed at hurting the US.
The Saudis then followed by dropping the price of its output in an attempt to force Russia’s hand, with an added advantage of grabbing market share.
“In the last few days Saudi Arabia has flooded the market with heavily discounted oil at a time when demand continues to weaken because of the coronavirus,’’ RACQ’s Renee Smith said.
“The last time we saw Brent Crude Oil this low was in April 2016, prior to an OPEC production cut.
“We are in the cheap phase of the cycle right now but a price hike could occur at any time in Brisbane.
“When it does peak we should see prices substantially lower than what we saw during the last hike when prices reached $1.73 a litre.
“In regional Queensland where there is no price cycle, it’s expected ULP prices could fall even further in coming weeks.
“Queensland drivers finally have a good new story when it comes to the price of petrol.’’Jump to next article