Perth fuel prices: Relief as average petrol price dips below $2, first time since Middle East conflict began

Perth motorists are finally catching a break as fuel prices slide to their lowest levels since the outbreak of conflict in the Middle East with average prices forecast to dip below $2 per litre.

In a dramatic shift from the record highs seen in recent weeks, the metropolitan average for regular unleaded petrol will fall to 197.5¢ on Saturday.

A significant turn around and much needed reprieve for hip pockets — marking the first time the city’s average has sat under $2 since the start of the war.

The news is equally welcoming for diesel drivers as that average price is expected to hit 289.6¢ tomorrow, marking the first time that average has fallen below $2 since the conflict began.

This downward trend is a sharp pivot from the petrol price pain reported by The West Australian on March 4 when prices first surged toward $2.07.

At that time, an average of 188.7¢ was considered a burden for West Australians, but little over a month later, a price under $2 is being dubbed a major relief.

Budget-conscious drivers should look toward specific local retailers to snag the best deals available in the metropolitan area.

Vibe Welshpool will offer the cheapest unleaded petrol at 183.7¢ while Atlas Fuel in Ascot won’t be far behind with a price of 183.9¢.

Across the major brands, Vibe petrol stations will hold the cheapest unleaded average at 190.0¢ while Caltex remains the most expensive at 200.6¢.

Both BP and Ampol stations will average under the $2 mark tomorrow at 198.6¢ and 198.1¢ respectively.

Additionally, Reddy Express will average 196.9¢ while 7-Eleven will sit at a slightly higher average of 199.7¢.

A FuelWatch spokesperson said 53 per cent of retailers will be selling ULP below the average tomorrow.

“According to the latest ACCC report released today, Perth has the lowest prices for both ULP and Diesel in Australia, and prices are expected to continue to drop in the short-term as international price movements start to be seen locally,” a spokesperson said.

National Roads and Motorists Association spokesperson Peter Khoury said he was not surprised fuel was dipping below $2 a litre given international benchmarks have plummeted.

“So Celebrating under $2 a litre seems odd, but we have had obviously the most dramatic month in history when it comes to oil prices,” he said.

“Before we went into the conflict we were paying around the $1.50 range.

“Obviously, all of that changed once the conflict broke. We saw record high prices significantly higher than any time in history since the war commenced.

“But what we’re now starting to see now are falls and I’ve got to say pretty significant falls in prices, both globally and domestically.”

Mr Khoury noted that the recent refinery explosion in Geelong “has got nothing to do with prices” in Australia, and said these new lows can be put down to gas oil falling $120 in the last two weeks.

“The prices are falling off the back of the announcement that the ceasefire was announced,” Mr Khoury said.

“We’ve been seeing gradual falls in global oil prices since then.

“The positive news for families in Australia is that we’ve seen wholesale prices falling for anywhere between a week and 2 weeks and that’s starting to be passed on.”

However, he warned that the market remains incredibly volatile and dependent on the stability of the region.

“For it to be sustained and continue to be passed on, we need that ceasefire to hold and we need it to become actual peace and we need the Strait of Hormuz to open permanently and then we will see significant further falls,” he said.

The road ahead remains uncertain as experts cannot yet put a firm timeframe on when prices might return to previous lows.

“It’s really difficult to put a time frame on it because there’s a lot of things we still don’t know,” Mr Khoury said.

“Like, we don’t know what sort of damage has been done to regional refineries and terminals in the Middle East because of all the conflict and the bombing.

“If this leads to recession, that will actually put downward pressure on demand, so there’s a whole lot of really important global factors that we just simply don’t know.

“This is the second oil shock in four years, so we need this one to end quickly.”

While some economists suggest it could take months for the market to settle, he concluded that the current trend is a vital win for household budgets.

“Anytime the prices are falling, it is a good sign, and we need them to continue to fall” he said.