23 July 2021: This week's long-awaited decision by the Organisation of Petroleum Exporting Countries (OPEC) to lift production volumes should see Australian families finally enjoy some relief at the bowser, according to the NRMA.
Mogas 95, the benchmark export price for Australian fuel, has fallen more than $USD 9 a barrel since the 6 July high of $USD 89.51 per litre, which resulted in prices climbing to pre-COVID highs and Brisbane recording its highest price for regular unleaded ever.
The artificially-enforced price hikes saw Sydney’s average price peak at $1.64 cents per litre for regular unleaded and prices across many regional towns increase to over $1.50. Further falls in Mogas 95 are expected and Sydney’s Terminal Gate Price by as much as 4 cents per litre.
NRMA spokesperson Peter Khoury said if the Australian Dollar remained stable at 73 cents against the Greenback than Australian families should start to see some relief at the bowser over the next cycle in Sydney and more broadly across the state.
"Current prices at the bowser should fall by as much as four cents per litre purely based on falls to Mogas 95 this week and with OPEC finally agreeing to lift oil production there is some degree of confidence that those prices will fall further," Mr Khoury said.
"Global demand for oil remains high, off the back of strong economic data from China, India and the United State along with the continued vaccine rollout.
"Unfortunately, Australia is at the mercy of global trading conditions, which means the price at the pump locally is not impacted by falls in demand for fuel locally to the lockdowns in place in NSW, Victoria and now South Australia.
“So many Australian families are doing it tough in these lockdown conditions and the NRMA wants to see falls to global oil prices passed on to the community immediately. The most important thing people can do is check the myNRMA app for the cheapest prices in their areas.
“There's a price variation of almost 47 cents per litre in the Sydney market with the cheapest price in Sydney currently 129.9 cents per litre.”
Next week the Commonwealth will release new inflation data. The NRMA will monitor this closely as this will impact fuel excise charges. The excise is adjusted twice annually in line with inflation.
Capital city average prices for regular unleaded in cents per litre:
- Sydney: 150.9 – (prices falling)
- Melbourne: 146.9 – (starting to rise)
- Perth: 160.5 – (prices falling)
- Adelaide: 142.1 – (prices falling)
- Brisbane: 141.9 – (prices falling)
- Darwin: 149.9 – Stable
- Hobart: 152 – Stable
- Canberra: 150.9 – Stable