Petrol Prices Expected To Drop As Coronavirus Causes Price War Panic
You could be filling up for $1/L
Petrol prices could drop as low as $1/L in Australia as a result a price war sparked by coronavirus fears.
Oil prices are plummeting by more than 20 per cent due to concerns that the coronavirus outbreak will see demand for energy falling as people cut back on travel.
The Minister of Energy of Algeria and President of the Organisation of the Petroleum Exporting Countries (OPEC) Conference in 2020, HE Mohamed Arkab, recommended extending production adjustments until the end of 2020 in response to the fact that the coronavirus epidemic "has had a negative impact on oil demand and oil markets".
"The coronavirus epidemic is having a negative impact on economic activities, particularly on the transportation, tourism and industry sectors, particularly in China, and also increasingly in the Asian region and gradually in the world."
- HE Mohamed Arkab
The Minister stressed that "the situation is clear; it requires corrective action in the interest of all."
However, Russia (the world's 2nd largest producer) weren't too keen on the idea, causing Saudi Arabia (the world's biggest oil exporter) to retaliate by slashing selling prices and releasing more supply into the market.
The price drop is expected to result in cheaper petrol prices in Australia, with predictions as low as $1/L.