1 Dec 2014

Petrol price plunge predicted by AA

5:45 pm on 1 December 2014

Petrol prices should fall below $2 a litre before Christmas - a level they haven't hit for nearly three years, motoring lobby group the Automobile Association says.

Crude oil prices are on the retreat after the Organisation for Petroleum Exporting Countries decided against cutting production last week, and fuel prices fell again today by 3 cents a litre.

Automobile Association analyst Mark Stockdale said the price of 91 octane was about $2.03 a litre and diesel $1.34.

On current trends, petrol prices in the main centres could drop below the $2 a litre mark soon, for the first time in two-and-a-half years.

"There's every chance that we'll get prices below $2 a litre across the country," Mr Stockdale said.

"It's been a long time since motorists have seen prices below $2, and I think that's going to be good news for motorists in the lead-up to our Christmas holidays."

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