Petrol to get cheaper thanks to OPEC decision to up oil production

Petrol prices around Australia are expected to get cheaper because of one important decision.

Australian petrol is expected to get cheaper after a decision to increase global fuel production.

The NRMA said petrol prices could fall by as much as four cents per litre thanks to the decision by the Organisation of Petroleum Exporting Countries (OPEC) to increase production volumes.

“With OPEC finally agreeing to lift oil production, there is some degree of confidence that prices will fall,” NRMA spokesman Peter Khoury said.

However, he said the lockdowns in NSW, Victoria and South Australia would have little impact on the price, even though fewer motorists would head to servos to fill their tanks.

”Unfortunately, Australia is at the mercy of global trading conditions, which means the price at the pump locally is not impacted by falls in demand for fuel locally to the lockdowns,” he said.

The NRMA said petrol prices had reached a peak in the first week of July. Picture: Christian Gilles / NCA NewsWire

The motorists’ association said petrol prices had reached a peak in the first week of July, climbing to levels not seen since before the pandemic, with Brisbane notching a price record for regular unleaded fuel.

But the decision by OPEC should accelerate the price fall that’s happened since then, as long as the Australian dollar remains at a stable rate compared with the US currency.

“Current prices at the bowser should fall by as much as four cents per litre,” Mr Khoury said.

“And with OPEC finally agreeing to lift oil production, there is some degree of confidence that those prices will fall further.”

He said global demand for oil was high, partly because China, India and the US had posted strong economic results and partly because of the success of global coronavirus vaccination efforts.

Prices vary depending on where you buy fuel. Picture: Christian Gilles / NCA NewsWire

Mr Khoury urged drivers to check the price of petrol at different stations in their area before filling up.

“There’s a price variation of almost 47 cents per litre in the Sydney market, with the cheapest price in Sydney currently 129.9 cents per litre,” he said.

The NRMA reported the average price for a litre of unleaded fuel in Australia’s capital cities as:

• Sydney 150.9 (prices falling)
• Melbourne 146.9 (starting to rise)
• Perth 160.5 (prices falling)
• Adelaide 142.1 (prices falling)
• Brisbane 141.9 (prices falling)
• Darwin 149.9 (prices stable)
• Hobart 152 (prices stable)
• Canberra 150.9 (prices stable)