Grey nomads promised relief from fuel price pain

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December 12, 2014

The falling Australian dollar may have pushed fuel prices to a historic high recently but it seems grey nomads ad other motorists can expect some relief this summer.

A report in the Daily Telegraph newspaper said capital city motorists paid an average of 150.6 cents a litre for regular unleaded petrol during the past financial year, with prices climbing 9.3 cents.

Australian Competition and Consumer Commission (ACCC) said this was the third highest average price on record, when adjustments were made for inflation.

In early 2014, the Australian dollar fell below 87 US cents for the first time since mid-2010, which the ACCC said “drove the price higher for motorists at the bowser”.

However, ACCC chairman Rod Sims told the Daily Telegraph that international refined petrol prices had dropped by 20 cents a litre since July.

“As the international price is such a large component of the retail price, this should be a welcome relief for motorists,” he said.

Other analysts also expect petrol prices to keep falling; CommSec chief economist Craig James predicts the average national price will tumble to about $1.25 in coming weeks.

The NRMA told the Daily Telegraph it sees Sydney prices dropping to about $1.27 before Christmas, and sliding to $1.22 by early January.

Despite the recent pain for motorists, the ACCC said Australians paid among the lowest prices for fuel in the developed world because of relatively low taxes.

• What is the most you have paid for a litre of fuel while on the Big Lap? Have you noticed prices coming down recently? Comment below

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