Fuel prices continued to fall during August, with the national price of 91 octane petrol dropping below $2.00 a litre for the first time in four months, according to AA PetrolWatch.
The price of 91 octane petrol at most outlets ended the month 9 cents down, on $1.98 per litre, although prices were as low as $1.70 per litre in some areas due to local competition. Diesel prices in many of the main centres fell 6 cents to $1.20 per litre by the end of August.
“Commodity prices continued to fall during August,” says AA PetrolWatch spokesperson Mark Stockdale. “The commodity price for petrol ended the month on about US$65 a barrel, which is much higher than the price of a barrel of oil which fell to US$42.
“The commodity price for petrol fell about 16 per cent during the month but because it only makes up a third of the final retail price this equated to about 11 cents per litre less at the pump. The diesel commodity price only fell 4.5 cents per litre.
“While the AA thinks fuel companies could have reduced petrol prices further, this is unlikely now that commodity prices have begun increasing again. But instead we would expect them to delay raising pump prices,” Mr Stockdale added.