According to FuelTrac, an agency commissioned by the Australian Automobile Association to monitor fuel prices, the average price of unleaded fuel in Sydney dipped to 86.7c a litre in June from 89.8c in April while Melbourne saw a sharper decline with prices falling from around 90c in April to 85.3c in June.

Thanks to an 8.3c state government subsidy to consumers, Brisbane motorists enjoyed the cheapest fuel in the country with the average price at 78.7c a litre.

FuelTrac said much of the fall in domestic fuel prices reflects a notable decline in world oil prices since mid-May, as the threat of a global oil supply crisis has abated. As a general rule of thumb, a $US1 decrease in the price per barrel of crude oil, slices 1c a litre off the price of petrol at the pump.