'Fill up now': Cheaper fuel prices unlikely to stick around

Australian motorists are enjoying some of the lowest fuel prices for months off the back of China's reduced demand for oil, but are they too good to last?

Figures from the Australian Institute of Petroleum show the average national petrol price dropped to 178.4 cents per litre this month, while the average diesel price stands at 182.7 cents a litre.

The push by China - the world's second-biggest oil importer - towards more renewable forms of energy is expected to lower the average Australian bowser price further, one expert says.

READ MORE: Lebanon rocked by second wave of exploding devices

Grady Wulff, a fuel analyst at Bell Direct in Sydney, says motorists can look forward to cheaper prices on the forecourt in the coming weeks.

"China's demand in the last four months has been declining ... by between 0.5 per cent and 3 per cent in recent months, but they're still taking a lot of oil, over 42 million barrels a month," Wulff tells 9News.com.au.

She says the other contributor to falling fuel prices here is the strengthening Australian dollar against the US dollar.

"We buy fuel in US dollars so that is going to be another driver in prices going down."

Wulff says there is a general market consensus the bowser price in Australia could drop to between $1.65 and $1.70 in time for parents to fill their tanks for the upcoming spring school holidays.

READ MORE: Stephanie used to pay $94 a month for home insurance. Four years later, she's paying $600

But spiralling violence in the major oil producing region of the Middle East, raised further by this week's wave of electronic device explosions in Lebanon are expected to force the price of oil to rise again.

"The Middle East tension and Russia-Ukraine tension are not going anywhere any time soon, these are continuing to have impact, not only on oil prices but energy stocks here in Australia and petrol prices here," Wulff said.

For the Australian motorist it means fuel costs will rise again over the long term.

"I'd say rush to the bowser now because it can't stay that low for long."

FOLLOW US ON WHATSAPP HERE: Stay across all the latest in breaking news, celebrity and sport via our WhatsApp channel. No comments, no algorithm and nobody can see your private details.