Motorists are enjoying some relief at the pump as oil prices plummet but there's a chance fuel prices will surge again before Christmas.
The national average price for petrol is sitting at $1.75, as per Compare the Market's estimates, well below the near $2-a-litre averages seen last month.
The wholesale price has sunk to $1.65 a litre.
Adelaide drivers are seeing the lowest average fuel price of any of the major cities, at $1.66 a litre.
Motorists in Hobart are paying the most for fuel, with the average sitting at $1.89 a litre.
Compare the Market's Chris Ford said retail and wholesale fuel prices were responding to oil prices, which had dropped dramatically in the past month to levels not seen since December 2021.
In the past week, Brent crude prices have fallen around 12 per cent to well below $80 a barrel, with the G7's new price cap on Russian crude triggering some volatility in the market and overall demand for oil easing as economic conditions worsen.
But NAB commodity experts Baden Moore and Adam Skelton said crude oil prices could swing up again as China relaxes parts of its COVID-zero strategy and production levels remain low.
When it comes to the price at the pump, Mr Ford said there was also a chance retailers would lift prices to coincide with the holiday season.
"There has been the insinuation before that we get higher fuel prices in the lead-up to major holiday periods, but at this moment in time the indicators really point to a decrease in price at the pump this Christmas," he said.
Not all cities are subject to seasonal fuel spikes with price cycles in Adelaide and Perth more regular.
Mr Ford said retailers were charging wildly different prices at the moment, with the most expensive fuel in Sydney nearly 50 cents more than the cheapest.
He recommended shopping around to find the best deal.
