CHEAP petrol prices are finally starting to flow through the Bass Coast and South Gippsland areas after the price per barrel collapsed on April 20, 2020 to as low as minus-$37-a-barrel.
But as a Sentinel-Times reader said on Facebook last weekend, the prices being quoted locally are annoyingly inconsistent.
At San Remo, for example, the price has dropped steadily over the past month selling at 74.9c/lt for Unleaded Petrol on Sunday afternoon before going up to 78.9c on Monday. It was 118.9c/lt for diesel.
The lower price was on a par with the cheapest rates in Melbourne according to https://petrolspy.com.au/
Elsewhere, the price at Leongatha was reported at 87.9c/lt on Sunday afternoon.
It was 10c more at Wonthaggi, quoted at 97.9c/lt.
So how has it come to this? Key dates in the petrol price journey:
* In 2000 at ‘Peak Oil’ production price per barrel was $50
* It rose steadily until June 2008 when it hit $165.
* After the GFC in 2008-09 it plummeted to $50 a barrel
* In February 2016, when US fracked oil kicked in, the price dropped to $36.
* In May 2020, after dropping to -$37 due to a lack of storage space, it is back up to $20 a barrel with massive cuts to production in the Middle East and the USA as demand tanks.
Where the price at the bowser goes from here is anyone’s guess, but it should by rights go down. However, if no one is making any money out of fuel sales, it’s not a good look long-term.