Global oil price instability more reason to shop around: RACQ

The State’s peak motoring body has urged Queensland drivers to be savvy about where they filled the tank, as global oil prices remained unstable.

Oil tank

RACQ spokesperson Lucinda Ross said while drivers had enjoyed cheaper prices later in 2018, since 1 January, the global Brent crude oil price had risen by 14 percent, and then flattened at about US$61 a barrel in recent days.

“We saw 15-month global oil price lows in December, and as a result, Queensland drivers were enjoying some great prices at Christmas,” Ms Ross said.

“Now, in the first few weeks of the new year, we’ve seen that global price climb steadily, so we’re waiting to see where it goes and what sort of impact it’ll have on bowser prices locally.”

Ms Ross said, in December 2018, the Organization of the Petroleum Exporting Countries (OPEC) and Russia met and decided to cut oil output by 1.2 million barrels per day from 1 January 2019, and this had played a part in the oil price rise.

“When OPEC cut production back in 2016, prices climbed for almost two years,” she said.

“Now, we’ve had another oil production cut, but at the same time, we’re also seeing record levels of production from the United States, so we’re not expecting to see global prices up at the levels we saw last October.”

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Ms Ross said regardless of the movements in the global oil price, Queensland drivers should always do their research to ensure they capitalised on the best deal available to them in their area.

“We’ll never be able to control what happens with the global price of oil, but what’s in our control is where and when we fill the tank,” she said.

“All it takes is 30 seconds, before you jump into the car, to find out where the lowest prices are in your area. By shopping around you could save yourself hundreds of dollars a year.”

Drivers could download RACQ’s Fair Fuel Finder app to locate the lowest price in their area.