Australia & World

Gasoline cheaper thanks to OPEC’s decision to increase oil production

Australia’s gasoline is expected to be cheaper after the decision to increase global fuel production. Photo: Kelly Burns / NCA NewsWire

Australia’s gasoline is expected to be cheaper after the decision to increase global fuel production.

NRMA said gasoline prices could drop by as much as 4 cents per liter, thanks to OPEC’s decision to increase production.

“There is some confidence that prices will fall as OPEC finally agrees to raise oil production,” said Peter Corey, a spokesman for NRMA.

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But the blockades in New South Wales, Victoria, and South Australia have little impact on price, even with fewer drivers heading to the servo to fill the tank, he said.

“Unfortunately, Australia is at the mercy of global trade conditions, which means that the price of local pumps is unaffected by the decline in local fuel demand due to the blockade,” he said.

NRMA said gasoline prices peaked in the first week of July. Photo: Christian Gilles / NCA NewsWire
NRMA said gasoline prices peaked in the first week of July. Photo: Christian Gilles / NCA NewsWire

According to the Drivers’ Association, gasoline prices peaked in the first week of July, rising to levels not seen before the pandemic, and Brisbane set a price record for regular unleaded fuels.

However, OPEC’s decision should accelerate subsequent price declines as long as the Australian dollar remains stable compared to the US currency.

“The current price of Bowser should drop by as much as 4 cents per liter,” said Khoury.

“And with OPEC’s final agreement to boost oil production, there is some certainty that their prices will fall further.”

He said China, India and the United States had strong economic results and that global demand for oil was high due to the success of global coronavirus vaccination.

The price depends on where you buy the fuel. Photo: Christian Gilles / NCA NewsWire
The price depends on where you buy the fuel. Photo: Christian Gilles / NCA NewsWire

Khoury urged drivers to check gasoline prices at various stations in the area before they were full.

“There is a price fluctuation of about 47 cents per liter in the Sydney market, and currently the cheapest price in Sydney is 129.9 cents per liter,” he said.

NRMA reported the average price of 1 liter of unleaded fuel in the Australian capital:

  • Sydney 150.9 (price drop)
  • Melbourne 146.9 (beginning to rise)
  • Perth 160.5 (price drop)
  • Adelaide 142.1 (Price drop)
  • Brisbane 141.9 (price drop)
  • Darwin 149.9 (price is stable)
  • Hobart 152 (price is stable)
  • Canberra 150.9 (price is stable)

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Gasoline cheaper thanks to OPEC’s decision to increase oil production

Source link Gasoline cheaper thanks to OPEC’s decision to increase oil production

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