Petrol prices continue to ease

Petrol costs continue to ease for motorists but the falls in fuel prices are unlikely to continue, an economist says.
The national average price of unleaded petrol fell by 1.8 cents a litre to 140.4 cents a litre in the week to June 5, data from the Australian Institute of Petroleum showed on Monday.
The city price fell by 2.2 cents a litre to 138.6 cents a litre, while the regional average price fell by just 1.0 cent a lite to 143.8 cents a litre.
An average household was spending around $196.50 a month on petrol, CommSec said.
CommSec chief economist Craig James said the fall in petrol prices was a positive for retailers.
"But prices haven't got too much further to fall, limiting gains in confidence and spending capacity," Mr James said in a statement.
Despite the solid falls in capital cities, petrol prices in several regional areas kept rising, including Griffith (NSW), Sale (Victoria), Cairns and Bowen (Queensland) and New Norfolk (Tasmania).
The average petrol price in Darwin rose for a consecutive week, up 0.3 cents a litre to 153.1 cents a litre in the week ending June 5.
CommSec believes that petrol prices have further to fall given that the full pass-through has not yet occurred.
"Pump prices should fall another two to three cents a litre in the coming week, even more in regional areas," Mr James said.
"Regional Australia has lagged capital cities in the pass-through of cheaper petrol prices.
"That can happen, especially when the drop in world and wholesale prices is unusually swift."
Mr James said the dearer fuel can take longer to be used in regional areas and for cheaper supplies to hit the petrol pump.
"But the wholesale price has fallen nine cents a litre, with the regional price down just 2.5 cents," he said.
"It is up to the oil marketers to explain the lags that are taking place."