Bowser prices to hit record lows: RACQ

RACQ expected petrol prices to dive below 100 cents per litre (cpl), as the current health crisis and the oil price war started by Saudi Arabia had an unprecedented impact on the cost of oil.

The global oil price was at its lowest in 17 years due to factors including Covid-19 and RACQ’s Renee Smith said unleaded petrol (ULP) prices had begun to plunge as a result.

“Bowser prices usually fall about one or two cents per litre each day at this stage of the price cycle, however on Wednesday the average of 137cpl was eight cents per litre lower than it was on Tuesday. That’s the biggest daily drop on record,” Ms Smith said.

“This is welcome news as some Brisbane servos have been price gouging this week, which is unacceptable during this time of uncertainty. We’re not driving as much during this crisis, but that is no excuse to rip motorists off.

“For example, when the average ULP price was 145.5cpl earlier in the week, indicative retail margins hit a record high of 48.7cpl.”

Ms Smith said it was likely prices would drop to 100cpl or less at the bottom of the cycle sometime next month.

“The last time we saw the average ULP price consistently below 100cpl was in June 2005 when the average price was 98.5cpl,” she said.

“Motorists also experienced prices below 100cpl briefly in 2008 immediately after the onset of the Global Financial Crisis, and again in early 2016, the last time Saudi Arabia started an oil price war.

“The message is to still delay filling up the tank right now as prices are still incredibly high and to wait until they fall further in coming weeks.”