Cheaper fuel expected in coming weeks

SKYROCKETING petrol prices have been hitting motorists’ wallets hard, but there is some much-needed relief on the horizon this month. This is how much you’ll save.

MOTORISTS are set to get some much-needed relief at the petrol bowser.

Savings tipped to flow through over the next two to three weeks could make it about $10 cheaper to fill a 70-litre tank, a chief economist says.

CommSec’s Craig James said the Singapore gasoline price — to which Australian prices were linked — had fallen by 17c a litre over the past month, and the wholesale unleaded petrol price was so far down by 12c.

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In the past week, the national average unleaded fuel price dropped 4.4c a litre to 156.1c, according to the Australian Institute of Petroleum.

“The pump price has only started its decline and further big price declines can be expected in the coming fortnight,” Mr James said.

Drivers are expected to get some much-needed petrol price relief.

“The average motorist may end up paying around $10 less to fill a 70-litre tank compared with a month ago.”

Mr James said there was always a lag for lower international prices to hit retail pumps.

New supplies had to be transported, and service stations had to sell out of more expensive fuel before replenishing.

Mr James said he believed that once the full effect of lower prices kicked in, Melbourne prices may drop to about $1.40 a litre or less during the discounted low point of the metropolitan price cycle.

Peak prices would also abate from the recent highs of $1.70 a litre.

Concern about the growth of the global economy affecting future oil demand had led to an easing of international prices, he said.

Some extra oil supplies were also coming out of Saudi Arabia, the United States and Russia.

Melbourne’s averaged unleaded petrol price today is 153.9c a litre, the RACV recorded.

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@KarenCollierHS