Petrol to hit just 75 cents a litre by June – in prices last seen during the 1990s
- Westpac economist Justin Smirk sees fuel prices falling 20 per cent by late June
- This would see unleaded sell for less than 75 cents a litre within just two months
- Perth has Australia’s cheapest petrol with an average price of 89.4 cents a litre
- Bowser price at 15-year low with crude oil levels plunging to early 1999 prices
- Learn more about how to help people impacted by COVID
Petrol prices in Australia’s big cities are expected to dive by 20 per cent to less than 75 cents a litre within the next two months to levels unseen since the 1990s.
Fuel is already selling at the lowest level in 15 years because of coronavirus, with prices of less than $1 a litre in Sydney, Melbourne, Brisbane and Perth on Monday.
Perth now has Australia’s cheapest fuel, with average unleaded prices of just 89.4 cents a litre, a CommSec analysis of MotorMouth figures showed.
Brisbane prices have fallen to just 93.5 cents a litre, the lowest since late 2004, as global crude oil prices plummeted to levels unseen since 1999.
Petrol prices in Australia’s big cities are expected to dive by 20 per cent to less than 75 cents a litre within the next two months. Fuel is already selling at the lowest level in 15 years because of coronavirus, with prices of less than $1 a litre in Sydney, Melbourne, Brisbane and Perth on Monday. Pictured is the Metro service station at Croydon in Sydney’s inner west
Sydney’s average unleaded prices have plunged to a four-year low of 97.2 cents a litre as Melbourne’s equivalent price fell to 99.2 cents a litre.
Dirt cheap petrol around Australia
SYDNEY: 97.2 cents a litre
MELBOURNE: 99.2 cents a litre
BRISBANE: 93.5 cents a litre
PERTH: 89.4 cents a litre
Source: A CommSec analysis of MotorMouth data
Westpac senior economist Justin Smirk predicted petrol prices had dived by 7.3 per cent during the March quarter.
He expected pump prices to slide by another 20 per cent by the end of June, which would see petrol prices fall below 75 cents a litre.
Average petrol prices in Sydney and Melbourne haven’t been at this level since 1999.
‘Because of the coronavirus, petrol prices collapsed because crude oil prices fell – we’re looking at a much bigger fall of probably closer towards 20 per cent in the June quarter,’ Mr Smirk told Daily Mail Australia.
Westpac senior economist Justin Smirk predicted petrol prices would slide by another 20 per cent by the end of June, to levels below 75 cents a litre. Pictured is the Sydney Harbour Bridge with very little traffic
‘The prices didn’t fall until right at the end of the March quarter and they start the June quarter off much lower and then through April we saw below a $1 a litre.’
CORONAVIRUS CASES IN AUSTRALIA: 6,619
New South Wales: 2,963
Western Australia: 545
South Australia: 435
Australian Capital Territory: 103
Northern Territory: 28
TOTAL CASES: 6,619
Crude oil prices have continued to dive with the benchmark American Nymex plunging overnight by 20.8 per cent to just $US14.47 a barrel – the lowest price since March 1999.
Nonetheless, Australian petrol prices are linked more to the Singapore Tapis index.
It rose from a 21-year low of $US18.45 a barrel on April 13 to $21.70 a barrel.
In Australian dollar terms, that translated into an increase of $4.41 or 14.9 per cent to $34.12 a barrel or 21.46 cents a litre, a CommSec calculation showed.
CommSec senior economist Ryan Felsman said COVID-19 was delivering relief for motorists, who are unable to travel because of coronavirus restrictions.
‘The world is awash with crude oil and volatility in global oil prices isn’t helping,’ he said.
‘Global oil demand has collapsed with households and businesses consuming less fuel due to COVID-19 restrictions.’
He expected pump prices to slide by another 20 per cent by the end of June, which would see petrol prices fall below 75 cents a litre. Average petrol prices in Sydney and Melbourne haven’t been at this level since 1999