$1 fuel unlikely but prices still expected to be low

WHILE speculation in southern states mounts over the possibility of petrol prices plummeting to $1 per litre, Queensland experts say it will not happen here but lower prices will last through Christmas.

The managing director of fuel price watchdog MotorMouth, Alan Cadd, said Sunshine Coast motorists should expect to see fuel around the 124.9 cents per litre mark, if not lower, at least until the new year, given the continued low price of Malaysian crude oil on the Singapore market.

"We should see prices around the 124.9 cents per litre, maybe one or two cents lower, at least until we go back to work," Mr Cadd said.

"We in Brisbane and the Sunshine Coast could see it come down a couple of cents further, as any spikes have been in the weekly cycle."

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Mr Cadd did not believe local service stations would bump up fuel prices on Boxing Day, when many families head off for Christmas holidays, as they could not afford to jeopardise their stake in the market.

"The whole network can't afford to do anything but (remain competitively priced)," he said.

In more good news for Coast motorists, Mr Cadd said diesel prices had dropped 10 cents per litre over the past two months, with LPG prices following suit.

"This is a good-news story," he said.

"I'd expect these prices to hang around to about January 5."


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