Motorists are benefiting from the spectacular 40 per cent fall in oil prices this year according to reports from Fairfax Media.
The average retail price for unleaded petrol is now at four year lows after world oil prices fell 14.7 per cent in December alone, according to research by CommSec.
Australia Institute of Petroleum figures show the Australian average petrol price fell by 4¢ to $1.284 per litre with the wholesale price at $1.144 a litre.
In the week to January 5, 2014, the national retail average for unleaded petrol was $1.587 meaning it has fallen 19.3 per cent in just under a year.
In the week to December 21, average retail prices in Sydney were $1.212, Canberra was $1.443m Brisbane was $1.27, Adelaide $1.162, Perth $1.254m, Darwin $1.487 and Hobart 1.427.
There appears to be no oil price recovery in view with Saudi Arabia, the world’s largest oil exporter, repeatedly ruling out production cuts in a move some interpret as aimed at squeezing out higher cost US unconventional producers.
Last week, Morgan Stanley cut their base case forecast for Brent crude next year from $US98 a barrel to $US70 per barrel. In its bear scenario, it saw oil hitting as low as $US43 per barrel.