Car Loans

Why aren't petrol prices falling as much as oil?

Global oil prices have plunged over the past year and a half, but suspiciously, Australian petrol prices have been quite stubborn.

With the fall in oil prices dragging down share markets, disrupting economies and hurting investors the world over, as a consumer, you might look on the bright side – “at least petrol prices are cheaper, right?”

Well, yes. According to RACQ, the average price of unleaded petrol in Australia’s capital cities in June 2014 was 156.1 cents. In January 2016, it was 118.8 cents – an almost 25 per cent drop. As demonstrated in the table below, for a standard 55 litre car, this represents a saving of just over $20 per tank.

 

Month Price (AUD/litre) Cost to fill a tank (55 litre)
June 2014 1.561 $85.86
January 2016 1.188 $65.34
Savings (per tank): $20.52

Source: RACQ

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