More Covid outbreaks set to keep Australian wholesale petrol prices at five-year lows

More Covid outbreaks set to keep Australian wholesale petrol prices at five-year lows

Covid outbreaks will keep Australian gasoline prices at a five-year low, with motorists paying 30 cents per liter LESS than at the end of 2019

  • Australian wholesale gasoline prices are at their lowest level in five years
  • Retail prices in major cities are 25 to 30 cents per liter cheaper than at the end of 2019
  • CommSec chief economist Craig James said Covid will keep prices lower

Global Covid outbreaks will keep Australian wholesale gasoline prices at their lowest levels in more than five years, economists predict.

A year ago, before the first case of coronavirus hit Australia, gasoline prices at Bowser soared to a 15-year high.

Since then, the steepest economic downturn since the Great Depression in the 1930s has resulted in a decline in crude oil prices.

Global Covid outbreaks will keep Australian gasoline prices at their lowest level in five years. A petrol station is pictured in Melbourne

As of Tuesday, gasoline wholesale prices of $ 1.081 per liter were near their lowest level since 2015.

Earlier this year, fuel retail prices in some suburbs fell below $ 1 a liter for the first time in two decades as Covid restrictions prevented motorists from visiting friends or sightseeing in their car.

CommSec chief economist Craig James said more global coronavirus outbreaks were likely to be good news for motorists as crude oil prices remained low.

Average lead-free prices on the browser

SYDNEY: 123.7 cents per liter

MELBOURNE: 125.2 cents per liter

BRISBANE: 136.6 cents per liter

PERTH: 106.5 cents per liter

ADELAIDE: 109.9 cents per liter

HOBART: 123.9 cents per liter

CANBERRA: 122.6 cents per liter

DARWIN: 115.8 cents per liter

Source: A CommSec / MotorMouth

“Worldwide, the coronavirus has led to reduced mobility and thus a lower demand for fuel,” he said.

Gasoline prices in Australia’s largest cities are 25 to 30 liters cheaper than at the end of 2019.

On Tuesday, Sydney’s average lead-free retail price was $ 1.237 per liter, while Melbourne’s corresponding lead-free browser price was $ 1.252 per liter.

Perth had the cheapest price in the capital at $ 1.065 per liter, while Adelaide was way behind at $ 1.099 per liter.

A stronger Australian dollar will also help.

The currency on Tuesday was close to 76 cents, compared to 70 cents at Christmas 2019.

The Nymex price for crude oil has also fallen from $ 60 a barrel to $ 47.60 a barrel.

“Both the global price of oil and currency are having a positive impact on Australian consumers,” said James.

Although average gasoline prices are low in December 2020, they are still above the level seen in April this year, when gasoline prices fell below $ 1 a liter in the normally expensive cities of Sydney, Melbourne and Brisbane.

In some suburbs of major Australian cities, fuel prices fell to 75 cents per liter for the first time since the 1990s.

CommSec chief economist Craig James said more global coronavirus outbreaks were likely to be good news for motorists as crude oil prices remained low. Pictured are locals waiting to be tested for Covid on Sydney's northern beaches

CommSec chief economist Craig James said more global coronavirus outbreaks were likely to be good news for motorists as crude oil prices remained low. Pictured are locals waiting to be tested for Covid on Sydney’s northern beaches

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