School holiday relief ahead for Australian motorists

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By Leith van Onselen

Those of you undertaking driving trips these school holidays will be relieved to know that petrol prices are headed lower, with the 3.9 cent per litre fall in the average price of unleaded fuel experienced in the week to 22 September likely to be followed-up with similar falls over the next 7-10 days. From Commsec:

According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 3.9 cents per litre to 151.7 cents a litre in the week to September 22…

Motorists have received a much needed reprieve when it comes to fuel prices. And there is further good news around the corner. The easing of the Syrian crisis and the lifting of the Aussie dollar represent a double whammy benefit for Aussie motorists.

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Since the start of September the Singapore unleaded price has fallen by 7 cents per litre in Australian dollar terms and is holding at a 14-week low. And more importantly the wholesale (terminal gate) price has fallen by 4.9 cents per litre over the past seven days. The slide in regional oil prices will filter through to domestic prices over the coming weeks. Motorists can expect pump prices to ease with underlying prices to fall a further 2-3 cents a litre over the next 7-10 days.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.