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Petrol prices drop below 90 cents a litre for first time in almost a decade because of coronavirus

Petrol prices in some parts of Australia have dropped below 90 cents a litre for the first time in almost a decade as coronavirus weighs down global oil prices.

Adelaide is the home of the cheapest fuel with average unleaded prices now at 90.9 cents a litre, the lowest since 2012.

Perth bowser prices have dropped to a four-year low of $1.01 cents a litre but it was selling for 94.9 cents a litre at Baldivis in the city’s south.

In parts of Sydney, unleaded was selling for 87.9 cents a litre at Fairfield in the city’s outer south-west.

Petrol prices in some parts of Australia have dropped below 90 cents a litre for the first time in almost a decade. Pictured is a bowser at Sydenham in Sydney's inner west where low-octane unleaded fuel was selling for less than $1 a litre

Petrol prices in some parts of Australia have dropped below 90 cents a litre for the first time in almost a decade. Pictured is a bowser at Sydenham in Sydney's inner west where low-octane unleaded fuel was selling for less than $1 a litre

Petrol prices in some parts of Australia have dropped below 90 cents a litre for the first time in almost a decade. Pictured is a bowser at Sydenham in Sydney’s inner west where low-octane unleaded fuel was selling for less than $1 a litre

The city-wide average was still above $1.21 a litre, as motorists on the north shore, northern beaches and eastern suburbs paid significantly more,  MouthMotor data showed.

CommSec senior economist Ryan Felsman said petrol prices varied widely across the suburbs of Australia’s big cities.

‘We’re seeing quite different outcomes across different parts of the city,’ he told Daily Mail Australia on Monday. 

‘Some retailers are already cutting prices below $1 a litre so that’s not the average throughout the whole city.’ 

In parts of Sydney, unleaded was selling for 87.9 cents a litre at Fairfield in the city's outer south-west.  The city-wide average was still above $1.21 a litre, as motorists on the north shore, northern beaches and eastern suburbs paid significantly more, MouthMotor data showed. Pictured is the Payless Fuel service station at Sydenham in Sydney

In parts of Sydney, unleaded was selling for 87.9 cents a litre at Fairfield in the city's outer south-west.  The city-wide average was still above $1.21 a litre, as motorists on the north shore, northern beaches and eastern suburbs paid significantly more, MouthMotor data showed. Pictured is the Payless Fuel service station at Sydenham in Sydney

In parts of Sydney, unleaded was selling for 87.9 cents a litre at Fairfield in the city’s outer south-west.  The city-wide average was still above $1.21 a litre, as motorists on the north shore, northern beaches and eastern suburbs paid significantly more, MouthMotor data showed. Pictured is the Payless Fuel service station at Sydenham in Sydney 

Melbourne’s average is still elevated at $1.31 a litre while in Brisbane it was $1.26. 

CORONAVIRUS CASES IN AUSTRALIA: 4,167

New South Wales: 1,918

Victoria: 821

Queensland: 656

South Australia: 299

Western Australia: 311

Australian Capital Territory: 77

Tasmania: 66

Northern Territory: 15

TOTAL CASES:  4,167

RECOVERED: 244

DEAD: 17

Mr Felsman said average prices Sydney, Melbourne and Brisbane prices were set to fall to $1 a litre within a fortnight as coronavirus kept motorists at home and the discounting cycle kicked in.

‘The collapse in demand due to the coronavirus is really impacting the prices for oil,’ he said.

The benchmark Nymex/West Texas Intermediate price of crude oil plummeted overnight to $US19.92 a barrel, the lowest it had been since November 2002. 

A spat between key crude oil suppliers Russia and Saudi Arabia has also boosted reserves, with flow-on effects for motorists the world over. 

‘That agreement to limit supply, that collapsed about a month ago and really what we’re seeing at the moment is a price war,’ Mr Felsman said.

‘That price war is all about a battle for more market share.’ 

Source: dailymail UK

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