Motorists hoping to cash in on plunging fuel costs could fill up for less than $1-a-litre, with the supermarket-backed petrol companies discounting under the milestone price.
Coles and Woolworths are offering combined discounts of up to 14 cents per litre, as pump prices continue to drop to their lowest level in Melbourne in five years.
The cheapest price for unleaded in Melbourne on Thursday was 110.9 cents per litre in Frankston, according to the Motor Mouth website.
Drivers in most areas of Melbourne were getting prices between $1.11 and $1.12 per litre at the bowser.
Woolworths jumped on the plunging prices, announcing it would add an extra 10 cent discount for drivers who spend money in-store. Combined with the traditional four cent supermarket discount, the full-price cut reaches 14 cents per litre.
Coles said it had already been offering a similar discount combination for months. On Wednesday, both fuel companies were offering discounted prices in Melbourne under $1-per-litre.
RACV fuel spokesman Michael Case said that while it was hard to predict where fuel prices would be in the future, all signs pointed to the fall at the bowser continuing.
A worldwide oil glut was the catalyst for the fall in the petrol price to its lowest level in Melbourne for five years, he said.
“The only way you can get any indication is to look at the wholesale fuel price and when you look at that it’s still trending downward,” he said.
Mr Case said the price in Melbourne had hovered close to 150 cents per litre for most of 2014, with a fall of more than 20 per cent since then a welcome holiday present for drivers.
“It’s a significant saving at a time when people are on the road travelling more than usual.”
But while city motorists are filling up for less, country drivers are not feeling the full benefit from the historic lows. The average price in regional Victoria last week was 125.1 cents a litre, according to the Australian Institute of Petroleum.
Mr Case said regional prices were usually about 10-12 cents higher, with many regional areas not getting the full price cut.
The federal government has warned suppliers that the consumer watchdog will be monitoring petrol prices in regional areas.
Small Business Minister Bruce Billson said he was concerned about the “mysteries of fuel pricing”, particularly the disparity between city and country prices.
He said the record low prices for petrol were great news for most drivers.
“However it seems curious to me that many Australians in rural areas are not yet reaping the benefits of these low prices,” he said.
In December, the federal government instructed the Australian Competition and Consumer Commission to monitor prices, costs and profits in the petrol industry for the next three years, producing a report every four months.
There will also be a “deep dive” examination of specific parts of the industry targeting irregularities in the fuel market which hurt motorists.
Mr Billson said competitive pressures were not enough to ensure lower prices were being passed on and encouraged motorists to raise their concerns with the ACCC.
ACCC chairman Rod Sims said the consumer watchdog was currently analysing fuel price data to assist in targeting petrol markets that were not functioning properly.
– With Scott Parker
What you’re paying at the pump (week ending Sunday January 4, 2015):
Melbourne average: 114.8
Victorian regional average: 125.1
Highest unleaded price in the state: Yarrawonga 140.1
Source: Australian Institute of Petroleum
How to get the discount:
Coles:
10 cents – spend $20 in-store at the service station
4 cents – spend $30 at supermarket
Woolworths:
10 cents – spend $10 in-store at the service station
4 cents – spend $30 at supermarket
