Cheaper petrol prices at the pump are on the way, and should be good news for motorists, according to South Australia’s peak motoring body.

RAA Senior Analyst, Matthew Hanton, says that despite global oil prices falling to nearly half of their record highs seen in July this year, the depreciating value of the Australian dollar has offset any potential savings at the pump.

“Over the last 10 days world oil prices have fallen more than the value of the Australian dollar, and this economic see-sawing will finally see motorists benefit in days to come.”

“It is reasonable for motorists to expect the local wholesale price to start to drop immediately and over the next 10 days motorists can expect to see a saving up to 10 cents per litre as cheaper fuel flows onto the local market,” says Hanton.

“Whilst it may take some days for the full impact to be realised locally, motorists should still remember that Tuesday remains the cheapest day to fill up due to the fuel discount cycle.”

Mr Hanton said that despite speculation in recent days over why pump prices have failed to fall, much of this public comment has neglected to recognise all the economic and pricing variables that ultimately influence what the pump price is in South Australia.

“The Australian fuel pricing system is by no means a simple arrangement, and simplistic statements that are made that fail to consider obvious impacts such as the movement in the Australian dollar only serve to paint an incomplete picture of pricing trends… and further confuse motorists as to what a realistic price at the pump should be.”

“The RAA trusts that the industry will pass on these reductions in a timely manner and remains committed to monitoring the industry to ensure the full savings are passed onto drivers in a timely manner,” Hanton says.

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