Petrol prices plunging

CUSTOMERS were queuing to get unleaded petrol at 90.9 cents a litre at Tweed Heads yesterday.

There was a constant glut of cars for the discounted fuel at the Tweed Heads South Woolworths service station, which at times stretched down Minjungbal Drive.

Tamika Smith, 19, of Kings- cliff would not have been licensed the last time fuel was less than 95 cents. She said it used to cost $60 to fill up her small car, but yesterday it was only $40.

"The $20 difference definitely goes a long way," Miss Smith said. "I don't need it as much as other people, but it definitely adds up."

The Tweed Daily News reported fuel dropping below a dollar on November 30 and it has now gone even further.

According to the Australian Institute of Petroleum, the Australian national average for unleaded petrol was more than 165 cents a litre back in mid July. The average was about 150 cents by October 26 when the giant price plunge began.

Tugun supermarket owner Bob Pankhurst, 57, was also waiting to fill up at South Tweed.

"It is great, good to see it happen ... I hope it stays down," Mr Pankhurst said.

He said it would have been about five years since he saw unleaded at such low prices, and he hoped it would help bring the cost of groceries down.

Tweed mortgage holders benefited from extra cuts to the cost of living when the Reserve Bank reduced the official interest rate to 4.25 per cent yesterday.