There is good news and bad news for motorists regarding gasoline prices across Australia.
For one thing, there’s no doubt that the bottom of the price cycle is coming to an end – and motoring group RACQ has advised people that now is the time to stock up before it’s too late.
“What we’re seeing now is prices starting to climb again as we enter the hike phase of the cycle and head into the expensive phase,” spokeswoman Nicky Haydon said Tuesday.
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But will consumers see the kind of prices – such as $2.20 a liter for unleaded – seen during the last spike in mid-March? Maybe not.
Graeme Bethune of energy consultancy EnergyQuest said there are a number of factors that could dampen prices, including the federal government’s halving of fuel excise duty in last month’s budget. .
“Global and local governments have done their best to stop (the high prices),” he told 7NEWS.com.au.
“Internationally, governments, especially the US government, are releasing oil from their strategic reserves.
“Other countries like Australia have reduced excise duties, which has been quite effective.”
Another factor was the confinement of millions of people in China due to COVID-19, which lowered demand.
“These three factors are headwinds to potential higher gasoline prices,” Bethune said.
‘A significant reduction’
Fueltrac spokesman Geoff Trotter also thinks prices will peak lower given the decision to cut excise duty to 22 cents per litre.
“Given the significant reduction in wholesale oil company prices, we would expect any new peak for unleaded to be a maximum of 195.9 cents per liter and 190.8 cents for diesel,” said he declared.