Petrol prices to fall further: Fuel Trac

Petrol prices dropped on Tuesday with further falls predicted, and the recent collapse of the international LPG price will have more motorists smiling before Christmas.

Fuel Trac - a Brisbane independent consulting service to the fuel industry -
believes petrol prices are likely to ease further next week.
Sydney unleaded petrol prices on Tuesday dropped to as low as $1.11 per litre, with
many metropolitan stations selling at $1.16.
The official average was $1.23 per litre, due to a high of $1.59.
Prices may dip by a further 2 cents per litre by this time next week, Fuel Trac
general manager Geoff Trotter said.
Tuesday's prices were last seen in the Sydney market about a year ago.
But Mr Trotter quelled recent hopes of unleaded prices dropping to $1 a litre,
saying world oil prices would have to drop from the current price of $US62 to $US50.
"For it to go down another $12 a barrel between now and Christmas, we think it's
unlikely," he said.
Mr Trotter said the biggest falls ahead would be in LPG prices after the
international price collapsed this month from $US800 a metric tonne to $US500.
The fallout has yet to hit the pumps, where LPG is currently selling for around 70
cents a litre.
"We should see by the end of November LPG prices drop by between 20 and 30 per
cent," Mr Trotter said.
If so, LPG prices will be around those seen in December 2006.
He said Sydney had the lowest petrol prices in Australia.
"There's obviously a serious price war going on down there in Sydney," he said.



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