The cost of petrol could be about to plunge across Australia after Saudi Arabia and Russia started a pricing war on oil.
Oil prices have fallen 28 percent since Friday, the largest drop since 1991.
News Corp reports the drop in prices is due to concerns that the coronavirus will stop people wanting to travel.
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It all started when the Organisation of the Petroleum Exporting Countries (OPEC) recommended that oil producing powerhouses should reduce their output in order to stabilise the industry.
Russia didn't want to play the game, according to news.com.au, and, as a result, Saudi Arabia retaliated by slashing their prices.
In a further dig, Saudi Arabia is planning to oversaturate the market to punish Russia.
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As this price war continues between the two countries, it's expected this drop in the cost of oil will flow onto Australia.
CommSec chief economist Craig James wrote: "The ready-reckoner is that every US$1 a barrel fall in the oil price leads to a 1.0 cent fall at the petrol bowser. Provided the Aussie dollar is reasonably stable, motorists may be able to look forward to filling up for near $1 a litre.
"Arguably the lower petrol price could prove more stimulatory. Many home buyers have responded to recent rate cuts by electing to pay down debt at a faster rate rather than use savings to engage in retail therapy."
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Even the federal government is assuring us with a price drop, with Treasurer Josh Frydenberg saying that it should take about a fortnight for the effects to flow to us.
Mr Frydenberg says petrol stations and energy providers are being warned not keep prices high.
"I wanted to re-emphasise to the Australian Competition and Consumer Commission (ACCC) the importance of holding the oil retailers to account in ensuring that Australians get the benefit from the lower oil prices," he told reporters in Canberra.
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"They have assured me that they will not only maintain their monitoring role and the vigilance that that involves.
"They'll also be calling out any energy companies that don't pass on the reduction in the wholesale price to the Australian consumer."
Featured Image Credit: PA