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Why are petrol prices declining and will it continue?

Motorists are finally seeing some relief at the bowser, following weeks of sky-high petrol prices.

Premium petrol prices got as high as $1.90 in some capital cities last month.

But prices are falling, with some stations selling unleaded petrol for less than $1.40/litre.

Founder of Vanda Insights, Vandana Hari, joins Ross Greenwood to explain why prices are declining.

Ms Hari says supply of oil has been “remarkably abundant” since sanctions were imposed on Iran – a major producer and exporter of oil – in October.

“Overall, the market feels there’s plenty of supply and perhaps not enough demand growth.”

But is the positive outlook likely to continue?

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