Fuel prices: World oil price decline is not being passed onto motorists, NRMA says

STILL HIGH: The cheapest regular unleaded fuel on offer in Cowra at lunchtime on Wednesday was 139.9 cents a litre which was well above the NSW average of 131.3. Photo: FILE
STILL HIGH: The cheapest regular unleaded fuel on offer in Cowra at lunchtime on Wednesday was 139.9 cents a litre which was well above the NSW average of 131.3. Photo: FILE

MOTORISTS in the region are still paying too much for fuel amid falling world oil prices and the spreading coronavirus pandemic, NRMA spokesman Peter Khoury says.

Almost every town has prices that were way above the state average, the NSW Government's Fuel Check shows, with motorists in one town paying 20 cents a litre more.

Young had by far the most expensive price for regular unleaded fuel at 12.30pm on Wednesday, with the cheapest on sale at Metro Fuel Young for 151.9 cents a litre. This is 20.6 cents a litre more than the NSW average of 131.3.

The cheapest fuel on offer in Parkes and Cowra was 139.9 which was also well above the state average.

Boorowa's fuel was also more expensive at 138.9, followed by Forbes at 133.9 cents a litre.

While the cheapest fuel in Grenfell was below the state average at 117.9 cents a litre.

Mr Khoury said there are a number of factors in why fuel prices should be falling.

"World oil prices have dropped to $30 a barrel which is less than half of its usual price," he said.

"The global economy is shutting down and that is leading to massive falls in price due to coronavirus."

The global economy is shutting down and that is leading to massive falls in price due to coronavirus.

NRMA spokesman Peter Khoury

Mr Khoury while some motorists have felt relief at the bowser, the lower prices are not always passed on.

"Right across Australia it hasn't fallen, or as much as it should, although in some regional areas it's a bit better," he said.

Mr Khoury said while some parts of the economy and businesses had shut down, fuel was absolutely essential during the pandemic.

"We still have to go out and buy groceries and everyone's still sending their kids to school. We do need to get around still," he said.

While oil companies "can charge whatever they want in Australia", Mr Khoury said regulation was not the answer.

"If the market works property and we've got decent competition then you don't want to regulate prices," he said. "There is growing calls for the government to get involved, but absolutely the government has bigger things to worry about right now."

Monitor fuel prices in your area at Fuel Check or on the NRMA app.

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