Petrol prices expected to plummet

Petrol prices in Sydney should fall to almost three-year lows as the impact of falling Singapore Mogas prices flows on to the Australian market, according to the National Roads & Motorists’ Association.

Australia’s international benchmark price - Singapore Mogas - plummeted by almost $13 a barrel to be trading at its lowest level since October 2009 ($79). Even after taking into account the falling Australian dollar, petrol prices should fall another four to five cents a litre in the next price cycle.

The current price cycle is expected to hit a low of $1.27 cents per litre average in the short term. The next cycle is forecast to hit a low of $1.22 cents per litre average immediately after the New Year.

NRMA spokesperson Peter Khoury said the community expected the oil companies to pass on falling prices to motorists, both in Sydney and across regional NSW and the ACT.

“Petrol prices should continue to fall to an average of $1.27 cents per litre in Sydney and, with Singapore Mogas prices falling to five-year lows, that trend should continue,” Khoury said.

“We’d like to see prices fall faster and we most definitely want to see these falling prices start to hit regional NSW and the ACT because most motorists outside Sydney are paying too much for petrol.”

The NRMA is encouraging motorists to hold off until average prices reach at least $1.27 cents per litre.