A barrel of crude oil has dropped to $20 which is the lowest level since February 1999. This is partly due to the coronavirus outbreak since December but partly due to a price war between large oil producers in Saudia Arabia and Russia.

A look around NSW gives you range differentiation not often seen. In Evans Head the price for regular unleaded is 114.9 cents per litre while in Lismore the average price is 135.9. As you look around the state you see some prices as low as 88 cents per litre.

The difference is as much as 60 cents a litre. On a small 50 litre tank that is $30 a tank, step up to a 65 litre SUV tank and your spending $39 more.

Why is there a 60 cents a litre difference in the same state?

Trying to investigate this question is difficult as no one wants to talk to you about petrol prices.

However, one theory is that some petrol stations will lower their prices in order to get people in their store to buy other items that are more expensive. Hence the cheap prices.

Another reason is that the actual volume of petrol sales is lower now due to the coronavirus. With operating costs remaining the same, like wages and electricity, the higher prices are needed to keep the businesses afloat. This would apply more so to locally owned petrol stations.

The third reason is that cheaper prices are simply not being passed on to motorists.

In Sydney, the variation is more extreme with prices ranging from 88 cents to 158 cents. The only difference between Sydney and Lismore is that you can shop around and find a cheap deal. In Lismore the pricing is virtually the same, our range is 135.9 to 143.9.

The indication is that prices will start to come down but how much and when?

We will have to wait and see.