Relief could be in sight for millions of Australians paying a heavy price at the bowser.
The cost of petrol could finally drop, despite fears skyrocketing prices will continue to soar due to global pressures, including the Russian invasion of Ukraine and countries bouncing back from the Covid-19 pandemic.
A significant drop in oil prices globally in recent days has experts hopeful the cost of fuel will follow suit.
The price of Mogas95, the benchmark fuel used by Australia plummeted by $24 a barrel five days ago.
Talks by the United Arab Emirates to increase oil production has also sparked hope.
The price of oil has plummeted in recent days, bringing hope that fuel prices will do the same
‘We are hoping if it is sustained, then motorists will see some significant relief. But things are so volatile globally, the reverse can happen,’ NRMA spokesman Peter Khoury told the Daily Telegraph.
Sydneysiders are paying an all time high of $2.16 a litre on average at the pump and spending more than $300 a month on petrol.
The record spike in fuel prices began long before tensions escalated between Russia and Ukraine.
‘When the global economy shut down with Covid, oil prices plunged to record lows,’ Mr Khoury said.
‘That strategy continued today and in addition to that, you’ve got Russia invading Ukraine and everything spiralled out of control.’
While he welcomed the promising signs in recent days, Mr Khoury also warned things could go the other way, which would see petrol prices continue to soar.
Petrol prices began to soar well before Russia’s recent invasion of Ukraine (pictured, fuel prices listed at a Sydney service station on Monday)
‘I don’t want to say never $3 a litre because I stood in this exact spot and said the same thing about $2 a litre. We don’t know what’s going to happen,’ he told the Today show on Tuesday.
‘Having said that, prices have not only stabilised, they have fallen, and fallen quite considerably, oil prices, globally, over the last six days.
‘If that’s sustained and continued, then hopefully we will start heading in the other direction. But it is so volatile. Things can change in hours right now.’
He doesn’t believe the federal government will slash the 44 cent a litre fuel excise tax when the budget is handed down later this month, adding more significant savings will be seen at the petrol pump if oil prices continue to drop.
Sydney household are currently spending more than $300 a month on average on petrol
