The latest drop in oil prices is good news for motorists who can expect to pay less at the pump.
Oil prices have dropped due to a volatile financial market, a sell-off of global shares in the last week.
Commonwealth Securities chief economist Craig James said the Singapore gas price fell by 5.2 per cent recently which would equate to around five cents off the Australian price of petrol.
“Petrol prices have eased to three-month lows and have potential to fall further,” Mr James said.
“If petrol prices do continue to decline, it will boost spending power, in addition to keeping inflation and interest rates low.”
Motorists were expecting a drop in prices over Christmas.
According to the Australian Competition and Consumer Commission (ACCC), petrol prices are in a constant cycle of movement with the cheapest and most expensive days changing from cycle to cycle.
The ACCC petrol price cycles website shows that Sydney, Melbourne and Brisbane are all in the lower point of their price cycles, with petrol being its cheapest.