Petrol Prices Settle As Fuel Retailers Face Off

DESPITE FEARS that recent high prices would continue to rise with no end in sight, a new price war between fuel retailers has seen the cost of petrol easing in the past week.

While wholesale prices have climbed to around 121 cents a litre, the average national price for unleaded petrol on Friday was 128.8 cents.

Motorists in Sydney, Melbourne and Brisbane had the best deal last week, with prices in most areas at or below 121 cents a litre.

Fears that the end of Queensland's fuel subsidy would lead to high prices for the state's motorists appear to have been allayed, with the cost of fuel remaining relatively competitive.

Commonwealth Securities Chief Economist, Craig James said that while the price war has meant good prices for customers, the average price is likely to rise by two to three cents in the next week as wholesale prices go up.