Australian petrol prices, after lifting to eye-watering levels late last month, are now starting to fall, and fast.
According to Commsec, citing data from the Australian Institute of Petroleum (AIP), the average price for unleaded petrol nationwide fell by 4.5 cents to 148.8 cents a litre last week, the largest fall in 8 months.
This tells the story.
While a national average of nearly 150 cents a litre is still high compared to what motorists were paying earlier this year, the good news is that lead indicators for prices are also continuing to fall.
The national average wholesale unleaded petrol price fell 2.8 cents to 136.2 cents a litre last week.
Singapore gasoline prices — where much of Australia’s petrol is sourced from — also fell by $A4.46, or 3.8%, to $A111.97 a barrel over the same period.
Should that be passed on at the pump, it points to modest declines for motorists ahead, at least in the short-term.
Whether it remains that way will likely be determined OPEC’s next meeting on June 22, an event that could see production curbs introduced in late 2016 partially reversed.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.