Prices at the pump starting to drop

PETROL prices are beginning to drop around Tasmania as a result of the oil price war between Saudi Arabia and Russia.

Petrol has been as low as 124.9 cents a litre at Port Arthur and 129.9c/l at Invermay.

The cheapest petrol in Hobart yesterday was Caltex Brooker Highway with unleaded at 142-146.9c/l.

The same price was available at BP Lauderdale.

Across the rest of Hobart the average price was around 152c/l.

According to the Australian Institute of Petroleum, the national average price of unleaded petrol fell by 2.2 cents to a 12-month low of 129.4c/l last week. The metropolitan price fell by 1.6 cents to 125.6c/l and the regional price fell by 3.3 cents to 137.1c/l.

CommSec chief economist Craig James said there was usually a 7-10 day delay between changes in Asian regional prices and domestic pump prices.

“We have been surprised to see Adelaide bowser prices already as low as $1.08 a litre and pump prices near $1.10 a litre across Melbourne, Brisbane and Sydney,” Mr James said.

RACT Group chief executive Mark Mugnaioni said the organisation was very concerned that Tasmanians were still paying too much for petrol.

“However, we know that in Tasmania prices should already have dropped further than they have, which is a situation we continue to monitor closely,” Mr Mugnaioni said.

“The ACCC also said it will look to publicly identify retailers that are not passing on reductions, which is something we would like to see to hold retailers to account.”