Gasoline becomes cheaper thanks to OPEC decision to increase oil production

Australian gasoline is expected to become cheaper after a decision to increase global fuel production.

The NRMA said oil prices could drop as much as four cents per liter thanks to the Organization of the Petroleum Exporting Countries (OPEC) decision to increase production volumes.

“With OPEC finally agreeing to increase oil production, there is a certain degree of confidence that prices will fall,” NRMA spokesman Peter Khoury said.

However, he said blockages in NSW, Victoria and South Australia would have little impact on the price, although fewer motorists would be heading to servos to fill their tanks.

“Unfortunately, Australia is at the mercy of global trading conditions, which means the price at the pump locally is not affected by declines in demand for fuel locally at closures,” he said.

The Motorists Association said gasoline prices peaked in the first week of July, reaching levels not seen since before the pandemic, with Brisbane setting a record price for regular unleaded gasoline .

But OPEC’s move is expected to accelerate the price drop that has occurred since, as long as the Australian dollar remains at a stable rate against the US dollar.

“Current Bowser prices are expected to drop to four cents per liter,” Khoury said.

“And with OPEC finally agreeing to increase oil production, there is a certain degree of confidence that these prices will fall further.”

He said global demand for oil was high, partly because China, India and the United States had posted strong economic performance and partly because of the success of global coronavirus vaccination efforts.

Mr Khoury urged drivers to check the price of gasoline at different stations in their area before refueling.

“There is a price variation of almost 47 cents per liter in the Sydney market, with the cheapest price in Sydney currently being 129.9 cents per liter,” he said.

NRMA reported that the average price of a liter of unleaded fuel in Australian capitals is as follows:

  • Sydney 150.9 (price falling)
  • Melbourne 146.9 (starts going up)
  • Perth 160.5 (price falling)
  • Adelaide 142.1 (price falling)
  • Brisbane 141.9 (price falling)
  • Darwin 149.9 (stable prices)
  • Hobart 152 (stable prices)
  • Canberra 150.9 (stable prices)

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