Australia Fuel Prices Set to Drop: Petrol and Diesel May Fall by Up to $0.50 Per Litre

Good news for Australian drivers: fuel prices are set to drop! Petrol and diesel costs are forecasted to fall by up to $0.50 per litre by the end of November 2025. For both individuals and businesses, the price drop brings welcome relief amid ongoing cost-of-living pressures. The decline in global oil prices, stronger Australian dollar, and stable supply chains have contributed to this positive shift.

Petrol Prices – Lower Costs for Everyday Drivers

The price of petrol, including regular unleaded (91) and premium (95) grades, is expected to drop between 20 and 30 cents per litre. Both urban and regional areas are seeing petrol stations compete aggressively on price, helping consumers enjoy significant savings. Motorists could save up to $25 on a full tank compared to last month.

Fuel retailers have been encouraged by consumer advocacy groups and the government to maintain price transparency and ensure cost savings from wholesale markets are fairly passed on to customers. These adjustments are part of efforts to reduce the financial strain of transportation costs on Australian households.

Diesel Price Relief for Transport and Business

The expected decline in diesel prices—ranging from 30 to 45 cents per litre—is particularly important for truck drivers, farmers, and logistics companies that rely heavily on diesel fuel. For freight and transport-based industries, this drop will reduce operational expenses, allowing for potential cost savings to flow through the broader economy and to consumers.

As long as global fuel markets remain stable, Australian businesses can expect ongoing operational relief in the coming months. The decline in diesel prices will also help reduce the costs of goods transported across the country.

Summary Table: Forecasted Fuel Price Reductions – November 2025

Fuel Type Previous Average Price Expected New Price Price Difference Effective Month
Petrol (Unleaded 91) $2.05/L $1.75 – $1.85/L $0.20 – $0.30 November 2025
Premium Petrol (95) $2.25/L $1.95 – $2.05/L $0.20 – $0.30 November 2025
Diesel $2.15/L $1.70 – $1.85/L $0.30 – $0.45 November 2025
LPG $1.05/L $0.90 – $0.95/L $0.10 – $0.15 November 2025
E10 Petrol $1.95/L $1.60 – $1.70/L $0.25 – $0.35 November 2025

Fuel Market Trends and Outlook

The Australian fuel market is projected to stabilize through late 2025 and early 2026. A stronger Australian dollar, easing geopolitical tensions, and improvements to global supply chains have led to reduced fuel import costs. If favorable conditions continue, prices are expected to stay low into early 2026.

In metropolitan areas such as Sydney, Melbourne, and Brisbane, independent fuel outlets are driving down prices through stronger competition. This helps reduce transportation costs, benefiting both small businesses and consumers nationwide.

What It Means for Consumers and Businesses

Lower fuel prices mean more affordable travel for drivers and reduced operating costs for businesses. Freight companies and transport operators depending on diesel are likely to experience notable relief, while everyday Australians can expect increased disposable income as less of their budget goes toward fuel.

With inflation continuing to impact household budgets, this price decline brings much-needed relief at the pump and supports broader economic recovery across sectors.

FAQs: 

Q1: How much can I save on petrol with the price drop?

Motorists can save between 20 and 30 cents per litre — roughly $25 on a full 50-litre tank compared to last month.

Q2: Will diesel prices drop as much as petrol?

Yes. Diesel is expected to drop by 30 to 45 cents per litre, providing significant savings for transport and logistics industries.

Q3: When will the new fuel prices take effect?

The lower fuel prices are expected to take effect by the end of November 2025 and continue into early December if global conditions remain stable.

 

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