Pump prices for unleaded petrol in Sydney have dropped below $1 per litre which is a level not seen since 2004. Fleet Auto News went looking for some reasons to explain the sudden drop.
We looked at the changes in the two of the key price influences – exchange rate and crude oil prices. Over the last two months the Australian dollar has moved within a range of two cents against the US dollar. And the price of crude looks like it has gone down in the same period. No answer here.
An urban myth was busted because its school holidays prices are meant to go up. Price cycles could explain some of the fall in Sydney prices though its now lower that any other point in the cycle since April 2015.
We finally dispensed with logic and went with the answer we all give our kids – Because.
And when compared against the pump prices in Sydney the graphs below from the Australian Institute of Petroleum for other capital cities show there is no logic with pump prices (or none that we can see).