Australian motorists are enjoying cheaper petrol as easing tensions in the Middle East and a stronger Australian dollar push prices down.
AMP Capital Investors senior economist Bob Cunneen says a four to five per cent drop in unleaded petrol prices since mid September is due to the Australian dollar outperforming the greenback and traders worrying less about an escalation in Middle East conflict.
"In the international oil market there's been less concern about the Syrian situation leading to increased tension or putting supply at risk," Mr Cuneen said.
"But for the Australian motorist it's also been a higher Australian dollar."
He said a lower US benchmark West Texas oil price had translated to slightly lower prices at the petrol pump since mid September.
"It has, but we're only talking about a four to five per cent fall in prices and that is not a great movement in the scheme of things."
During the past month the Australian dollar has risen more than three per cent against the US dollar, contributing to a softening in local petrol prices.
Still, motorists could experience more relief at the bowser after the price of West Texas Intermediate oil closed at $US96.86 a barrel on Wednesday, its lowest price since June 28.
The oil price has fallen five per cent over the past week after closing at $US102.29 a barrel on October 17.
It is now nine per cent lower than $US106.59 on September 17.
Average unleaded fuel is currently around $1.42 to $1.45 per litre, around four to five per cent lower than the average of $1.50 per litre during the September quarter, according to official inflation figures.