Petrol prices are heading down towards the $2 mark with BP announcing a 3c price cut today as international oil prices tumble.
BP said it was dropping the price of 91 unleaded to $204.9c a litre and diesel 2c a litre to $142.9c a litre.
The company said it was its sixth price decrease in the last month.
However, the AA said if petrol prices matched the fall in oil prices unleaded could already be under $2, where they were nine months ago.
"There's every chance we could get prices down under $2 in the next days or weeks,'' spokesman Mark Stockdale said.
''Petrol prices are coming down thin and fast - they're coming down quickly but they're not enough. The AA's monitoring of commodity prices shows the fuel prices should fall another 4c to 5c a litre."
A BP spokesman said the price reduction was a reflection of "classic economics", with demand falling on concern the Chinese economy is slowing at the same time as international refineries come back on stream after a maintenance period.
