Falling price of petrol fattens drivers’ wallets

MOTORIST’S yearly petrol bills just got about $140 cheaper, after petrol prices were cut for the seventh consecutive time.

In just six weeks, the price at the pump has dropped by 14 cents, giving drivers an extra 28 kilometres for a $50 tank of petrol.

Both petrol and diesel prices hit a new low for the year yesterday, dropping 2c a litre to their lowest point since April and May last year.

A litre of 91-octane fell to 207.9c and diesel dropped to 140.9c a litre.

It was the seventh consecutive petrol price drop in six weeks.

Automobile Association PetrolWatch spokesman Mark Stockdale said the 14c drop in petrol would translate to about $140 in petrol savings over the course of a year.

This was based on a typical medium-sized 2-litre car, he said, which the AA estimates uses $2800 of petrol annually.

BP spokesman Jonty Mills said the cut was because of the continued downward trend in the cost of oil on the international market.

But, Mills said, it was normal for prices to drop at this time of the year with a change of seasons.

‘‘There is also stockpiling going on, which lessens demand and drives the price down,’’ he said.

‘‘At the moment it’s good news for motorists as the pump price is at its lowest since April last year and we’re handing on these benefits as quickly as possible.’’

The AA put the price-drop down to falling refined fuel prices, on the back of falling oil prices, now the lowest in four years. A firmer exchange rate also had an impact.

Last week, Stockdale warned prices could soon rise, judging by past trends. It was difficult to forecast whether the current price drops would continue, however, because of the influence of exchange rates and commodity prices.