Petrol prices drop below $1 per litre

The new year has delivered Sydney motorists a milestone at the bowser, with petrol prices falling below $1 a litre for the first time in six years.

Metro Petroleum is leading the charge, dropping the price of E10 to 99.9 cents per litre at three of its Sydney stations in Tempe, Revesby and Blakehurst at 1pm on Tuesday.

About 20 per cent of all fuel sold in NSW is E10 unleaded.

Metro Petroleum’s pricing officer Elie Dib said he expected the price to hold below a dollar for a week.

“I think everyone is looking for cheap prices again. There’s lots of interest and everyone’s enjoying it again,” he said.

Although one station in western Sydney had a pre-Christmas sale of 99 cent petrol for one day, the last time Sydneysiders regularly fuelled up at sub-dollar prices was in December 2009.

The last time the average national petrol price was below a dollar was in the week of February 12-20, 2005. It is currently sitting at $1.14 per litre.

The falling bowser price reflects a worldwide glut in oil, which has seen prices drop more than 40 cents a litre from a $1.55 high in July 2014.

According to NRMA spokesman Peter Khoury, motorists could expect the relief at the bowser to continue for “the next few weeks”.

“What we are seeing in the global market right now is something we haven’t seen in a very long time,” Mr Khoury said.

“The United States have been increasing production year-on-year now for a few years. As a result, Saudi Arabia has increased production to compete.

“So you’ve got this bizarre situation globally where there is more oil on the market than what we are using, hence the falling prices.”

This global oversupply has seen the price of Brent crude fallen to $US53.25 per barrel overnight, while West Texas Intermediate plunged below $US50 per barrel.

Where in the Illawarra have you seen the best fuel price? Let us know in the comments below.

This story Administrator ready to work first appeared on 老域名.