The price of petrol has fallen dramatically in the past week with the average national price of unleaded now sitting at $1.59 per litre.
The drop had been widely predicted after the price of crude plunged about $20 on world markets.
"Sharp falls in global oil prices are filtering through to motorists and there is more good news to come," CommSec equities economist Savanth Sebastian said in his weekly petrol brief.
"The national average fuel price fell by almost four cents a litre in the latest week, marking the biggest weekly fall in pump prices in 13 months."
Crude has roared up to prices approaching $US150 a barrel from a late 1990s price of $US10 in what analysts say is the second oil crisis.
Oil prices ended trading last week at around $US125 a barrel in London and New York.
"We would expect oil companies to trim pump prices by 10 cents a litre over the next week, otherwise they will risk feeling the wrath of regulatory authorities and Australian motorists," Mr Sebastian said.
"The national average price is likely to moderate to $1.40 a litre in the next fortnight."
Mr Sebastian said the average family was now paying $223.30 a month for petrol.
"Rising living costs have added to the strain on the economy and the general weakness in consumer sentiment.
"However, household budgets are likely to gain a reprieve when fuel prices get back down to around $1.40 a litre effectively saving the average household around $30 a month from the highs reached two weeks ago."
Front page
National home
RSS Feed