Motoring groups say petrol prices could drop to under a dollar for the school holidays following weeks of lower than usual prices.

But petrol station operators say the discounts may not last.

Catherine Niven reports.

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After a private analysis of the petrol market motoring authority RACQ has estimated the price of unleaded and E10 petrol could fall dramatically.

Paul Turner, RACQ: “Domestically here in Queensland and in Australia we are seeing a lot of competition surprisingly between the majors which is Coles and Woolworths, usually it’s the independents but this time it’s the majors that are driving down prices.”

A strong Australian dollar and softer international prices are thought to be the reason behind the dip.

It’s good news for both motorists and petrol station operators.

Tony Anderson, Matilda manager Spring Hill: “We lose a lot of business when the price goes up, when the price comes down obviously everyone doesn’t mind going for that drive or whatever so we do catch a lot more business.”

With the school holiday season coming up, Queenslanders may finally see some financial relief with prices hitting their lowest levels for eleven months.

Vox 1: “I wish they’d keep it up, we need lower prices. So do you think you will drive more, more day trips? yes we will drive more.”

Vox 2: “The cheaper the better I suppose.”

Vox 3: “Sure, but I mean there’s downsides to having lower petrol prices too you get more congestion to so it’s not always a good thing.”

Petrol station operators say motorists should take advantage of the low prices because they may not last.

Tony Anderson, Matilda manager Spring Hill: “Go and do that trip up north or down south, go to the Gold Coast or the bushwalks or however you want to do it because certainly the prices will go up.”

Motorists are advised to shop around for the best prices.

Catherine Niven, QUT News.