Global oil prices have slumped, yet petrol price relief is uncertain

Global oil prices have slumped, yet petrol price relief is uncertain


Record petrol prices are causing stress for households and businesses.

However, a nose-dive in global oil prices will not necessarily mean that the price you pay at the bowser will soon fall.

“Over the last two weeks, we’ve actually seen oil prices dropped by about $22 a barrel,” says Mark McKenzie, the chief executive of the Australasian Convenience and Petroleum Marketers Association.

A man stands on a footpath outside a petrol station.
Mark McKenzie represents petrol station owners and thinks pump prices will fall in coming weeks.(ABC Illawarra: Sarah Moss)
oil prices
Global prices for crude oil – which is then refined into petrol and other products – have fallen about 15 per cent in the past month.(ABC News: Alistair Kroie)

However, the situation is complicated, with several factors — such as the invasion of Ukraine, refinery capacity, a costly pre-election promise and the potential for a recession in the United States — all generating differing views about whether petrol prices will fall and, if so, by when.

Costs soar at the pump

Petrol prices have almost doubled in two years.

The average price of a litre of unleaded fuel in Australia last week was $2.11, according to the Australian Institute of Petroleum (the capital city average was $2.09, the regional average $2.13).


Posted , updated 

Share this post

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *