-
Australian petrol prices fluctuate according to the world price of oil and are currently soaring over $1.50 a litre.
The price of petrol could be set to drop later this year.
Shell has predicted that oil prices could fall to about $70 a barrel from current levels above $110, citing high volatility in the economy and energy markets.
Australian petrol prices fluctuate according to the world price of oil and are currently soaring over $1.50 a litre.
Royal Dutch Shell boss Peter Voser revealed that 2011 profits rose 54 per cent last year to $28.6bn, but said they estimated oil prices would slip "inside a $50-$90 range'' this year.
He blamed "unprecedented geopolitical events" such as the Japanese earthquake, eurozone crisis and the Arab spring for a slide in oil demand and a subsequent drop in prices last year.
"The global economy and energy markets are likely to see continued high volatility," he said.
Motor Trades Association of Australia (MTAA) boss Richard Dudley says world oil prices will "always have a considerable beating on the price of fuel here".
"However, what we are more concerned about is the discounting war by the two supermarket giants," he says.
Dudley says discounting over the holiday period had blown out to up to 25c a litre, but had since increased to 35c if motorists also buy alcohol.
"These are just temporary discounting activities but what we are looking at a future where the independents are forced out and motorists will be at the mercy of a duopoly dictating market prices. We have lost thousands of index retailers over last decade and about 2500 have left the industry in Victoria alone. Genuine competition in the market is what we want."
