Gasoline prices have fallen to 63 cents per liter in one Australian state, fueling hopes that it could spur a huge flight to regional tourism over the long weekend.
Refueling costs were the lowest on Friday mornings since 2003 in South Australia, with dozens of outlets offering fuel for less than 70 cents per liter.
But the country’s largest auto group has warned that other states have no hope that prices will drop so low anytime soon.
The average fuel price in Adelaide on Friday morning was about 84.4 cents per liter, which is cheaper than a bottle of Mount Franklin water for $ 1.35.
Gasoline prices have fallen to 63 cents per liter in one Australian state, raising hopes that it could encourage growth into regional tourism for the long weekend
Some outlets in the Northeast even fell below 70 cents, with one ‘OTR’ outlet at Greenacres quoting prices of 63 cents per liter on the MotorMouth fuel app.
The price drop represents a savings of between $ 18 to fill a city roundabout’s tank or $ 37 for a large four-wheel drive compared to the same time last year.
Peter Khoury of the National Roads and Motorists’ Association told Daily Mail Australia that drivers elsewhere in the country are unlikely to rush to the bowsers.
“Adelaide is currently a remarkable place to fill up on gas, not so much elsewhere in the country,” he said.
Peter Khoury of the National Roads and Motorists’ Association told Daily Mail Australia that drivers elsewhere in the country are unlikely to rush to the bowsers (pictured: Traffic builds up in Sydney CBD after lockdown restrictions eased in early May)
“If you look at the big capitals, they all fall slowly and should continue to fall, but we are far away where Adelaide is.”
Fuel costs in Brisbane are $ 1.08 and down, Melbourne $ 1.12, Sydney $ 1.09 and Perth $ 1.10.
But Mr. Khoury said that even if every city is going through its usual price change due to price cycles, drivers may not benefit from the savings.
“Adelaide is at the bottom of the price cycle, but Sydney, Melbourne, Perth and Brisbane are at the top of the cycle this week,” he said.
Some outlets in the Northeast even fell below 70 cents, with one ‘OTR’ outlet in Greenacres in Adelaide at prices of 63 cents per liter
“Next weekend, we should be under $ 1 if the oil companies pass the trap they should pass, but they didn’t last long,
“The last cycle took two months to get to the bottom of the cycle and four days to go up, so they are very good at hanging and awful at dropping”,
He said that while a retailer sells fuel for one price, the costs per city can vary dramatically.
’63 cents that is definitely the cheapest. You always get an outlier who charges such a price. The most expensive in Adelaide is 97.9. You will always have extremes on both sides, ”he said.
NRMA’s Peter Khoury said, “Adelaide is a remarkable place to refuel now, not so much elsewhere in the country” (motorists pictured traveling through Melbourne CBD in May 2020)
RAA fuel expert Mark Borlace told it Adelaide now the city suffers most from these large price differences between retailers.
“RAA research shows that Adelaide has the widest range of gasoline prices of any state capital, which is why RAA lobbied long and hard for real-time gasoline prices,” he said.
Last month, economists predicted that fuel prices in the country’s major cities would drop by 20 percent to less than 75 cents per liter.
Fuel fell to its lowest level in 15 years due to coronavirus, with prices less than $ 1 per liter in Sydney, Melbourne, Brisbane and Perth on April 20.
Fuel prices drop to their lowest price in years, with the average price in Sydney on May 22 at 1.09 / liter compared to October 2019 when prices were at 11 years (shown)
Gasoline prices in the major cities of Australia are expected to drop 20 percent over the next two months to less than 75 cents per liter. Fuel has been selling at its lowest level in 15 years due to coronavirus, with prices below $ 1 per liter in Sydney, Melbourne, Brisbane and Perth on Mondays. Pictured is Croydon tube station in the inner west of Sydney
Perth was Australia’s cheapest fuel, with average lead-free prices of just 89.4 cents per liter, a CommSec analysis of MotorMouth figures showed.
While prices in Brisbane fell by just 93.5 cents per liter, the lowest since late 2004, when world crude oil prices plummeted to the lowest since 1999.
Sydney’s average lead-free prices fell to a four-year low at 97.2 cents per liter, while Melbourne’s equivalent price fell to 99.2 cents per liter.
Westpac senior economist Justin Smirk calculated that gas prices fell 7.3 percent in the March quarter.
He expected pump prices in the capital to drop another 20 percent by the end of June, bringing gasoline prices in Brisbane to fall below 75 cents per liter.
Average gasoline prices in Sydney and Melbourne have not been at this level since 1999.
“Because of the coronavirus, gasoline prices collapsed as oil prices fell – we’re looking at a much larger drop, probably closer to 20 percent in the June quarter,” Smirk told Daily Mail Australia.
Westinac economist Justin Smirk predicted gasoline prices would drop another 20 percent by the end of June, below 75 cents per liter. Pictured is the Sydney Harbor Bridge with very little traffic
“Prices only fell at the end of the March quarter, and they started the June quarter much lower and through April we saw less than $ 1 per liter.”
CORONAVIRUS CASES IN AUSTRALIA: 7,083
New South Wales: 3,084
Western Australia: 557
South Australia: 439
Australian Capital Territory: 107
Northern Territory: 29
TOTAL CASES: 7,083
Crude oil prices have continued to plunge, as the benchmark US Nymex plummeted 20.8 percent overnight to just $ 14.47 a barrel – the lowest since March 1999.
Nevertheless, Australian gasoline prices are more linked to the Singapore Tapis index, which rose from a 21-year low of $ 18.45 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 percent to $ 34.12 per barrel or 21.46 cents per liter, a CommSec calculation found.
Senior economist at CommSec Ryan Felsman said COVID-19 provides relief to motorists who cannot travel due to coronavirus restrictions.
“The world is inundated with crude oil and the volatility of global oil prices is not helping,” he said.
“Worldwide demand for oil has collapsed, and households and businesses are consuming less fuel because of COVID-19 restrictions.”
He expected pump prices to drop another 20 percent by the end of June, bringing gasoline prices below 75 cents per liter. Average gasoline prices in Sydney and Melbourne have not been at this level since 1999