A shift in the petrol price cycle will deliver cheaper fuel to motorists for even longer, a peak motoring body says.
One of the year’s best runs of discounted unleaded came to an end today, but drivers are being told that another cheap run is just around the corner.
The price for regular unleaded has lingered in the low $1.30s for 10 days – the longest discount cycle since March – and the Royal Automobile Association (RAA) says motorists can get used to it.
“The trend is growing,” said Chris West from the RAA.
“The cycle continues to get longer, where prices are lower for longer, so for motorists it’s good news, at least in the immediate term.”
Adelaide has the lowest prices in the country when the price does drop, typically by about 17 cents each cycle.
South Aussies are also wining on the weekend, with retailers usually waiting until we return to work top jack up the prices.
“This is the cheapest it’s been for quite a while, but I think it is going to go up again very soon,” said one motorist taking advantage of the low price today.
But the RAA has warned that heavy discounting may have longer term consequences.
“In the medium term though, we have concerns that competition may be affected,” Mr West said.
“This is unsustainable, and they have to raise their price at some stage.”
The Australian Competition and Consumer Commission’s (ACCC) annual investigation into unleaded petrol pricing will be released in December.