Geelong motorists are enjoying an unexpected plunge in petrol prices, as a number of local outlets slash the price of unleaded to levels not seen in months.
Early on Tuesday the United service station on Melbourne Road, Corio, which is well known for its discounted fuel, was selling unleaded at $1.84 a litre – 14c/l cheaper than the average Geelong price of $1.98.
In Melbourne the current average price of unleaded ranges from $1.89 to $1.94.
The price drop has surprised drivers, who have been told by industry experts to brace for big jumps in the cost of fuel due to the outbreak of violence between Israel and Hamas in the Middle East, the ongoing war in Ukraine and the weak Australian dollar.
Federal Treasurer Jim Chalmers said global cuts to oil production were also having an impact.
Wednesday’s latest consumer price data is expected to show petrol prices increased by 7% in the three months to the end of September, feeding fears of a posible interest rate rise when the Reserve Bank next meets on Melbourne Cup Day.
At it’s October 3 meeting the board noted that “the rise in retail petrol prices would continue to underpin inflation over coming months and could influence households’ inflation expectations.”
