Billy

Petrol reaches magic dollar mark

IN a remarkable turnaround in the price of petrol, motorists in some parts of the country are paying less than $1 a litre, a psychological benchmark not anticipated until at least Christmas.
As oil prices on the benchmark US index dropped below $US60 overnight, the pump price in Brisbane has dropped to $1.05 a litre.
And with major supermarkets announcing further discounts in their petrol voucher promotions, motorists were using their six-cent discounts to fill up at 99.9 cents a litre.
The rest of the country can expect the same good news in a matter of weeks.
Commsec chief equities economist Craig James said the world was awash with oil.
"The turnaround in the oil market is nothing short of remarkable, but it's simply a case of a rash of factors all pulling in the same direction," Mr James said in a analysis of Australian petrol prices.
A calming of tensions in the Middle East and a weaker than expected hurricane season in oil-producing regions had helped oil prices off their record highs of the last six months.
"Fewer geopolitical jitters and disruptive hurricanes together with more oil hitting the market has pushed US oil inventories to their highest levels in over seven years.
"The good news is that oil prices of $US60-65 are attractive for oil producers, those marketing alternative fuels, as well as consumers," Mr James said.
He said Australians could expect the average price of petrol, about $1.19 a litre, to drop in coming weeks.
"Petrol below $1 a litre is the exception rather than the rule but more motorists are likely to be paying between $1 and $1.10 a litre in the next few weeks."
Analysts had been expecting the price to drop below $1 a litre but not until around Christmas.
- AAP and The Australian

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