The current average in Sydney is 126.1 cents per litre and is expected to fall at least another six cents per litre over the coming seven days. Prices reached a high of 138 cents per litre last week.
While prices are not expected to reach the bottom of the cycle until mid-next week, there are already a number of bargains to be found across Sydney today.
According the NRMA App, some of the cheapest prices include 116.7 at the Speedway in Granville and 116.9 at the Mobil in Granville.
A number of independent service stations across Sydney have now posted prices for regular unleaded under 120 cents per litre.
Sydney prices are now significantly cheaper than most of the state, so families heading away for the long weekend are encouraged to fill up in Sydney first.
Singapore Mogas (Australia's international benchmark price) has fallen $1.50 a barrel to $69.5USD and the Australian Dollar has risen to 75.8 cents. Both factors should provide further relief to Australian motorists in the coming weeks.
NRMA spokesperson Peter Khoury said after the higher-than-expected prices over the Christmas holiday period there was some relief in sight for motorists this Australia Day long weekend.
"It has taken weeks but we are now finally starting to see prices falling in Sydney in accordance with the price cycle and we are hoping that these falls will start to flow on to regional NSW as well," Mr Khoury said.
"While prices are falling it's still too easy for motorists to get caught out paying too much for petrol, with the gap between the cheapest and most expensive service station in Sydney currently at least 23 cents a litre.
"So if families are going away this long weekend or filling up the NRMA is urging them to use the real-time data now available through the my nrma app – the difference in price between service stations in your own neighbourhood can be huge."