Petrol prices drop below $1 in Sydney, expected to hit 18-year low

Petrol prices in Sydney are heading towards an 18-year low as it drops below $1 across the city.

Prices are at a four-year low but expected to keep falling over the next fortnight to below 90c a litre for regular unleaded.

"Pleasingly what we are finally seeing here in Sydney, and what we are seeing a in number of capital cities petrol prices are falling to the levels where we would hope them to be and they will continue to fall," the NRMA's Peter Khoury said.

"We will see in the next week or week and a half prices in this city that we have not seen for 18 years."

Currently, nearly 60 per cent of service stations in Sydney are charging less than $1, and the NRMA is seeing similar falls in Brisbane Melbourne Adelaide and Perth.

The price drop is yet to hit regional areas.

"This is obviously a result of the impact of the coronavirus on the global economy, the shutdown of the global economy has seen significant falls in traffic volumes in capital cities and towns right across the globe," Mr Khoury said.

"That has seen an oversupply of oil on the global market and that impact continues today."