Woolworths was determined to rival the recent low price offered by the city’s independent newcomer United, offering the cheapest unleaded petrol at 116.7 cents per litre for supermarket discount voucher customers.

United’s Plus unleaded price was 117.7 cents per litre, its lowest mark since opening a month ago.

The average price per litre around the city was 119.8 yesterday, petrol prices dropping 43 cents per litre in the last month.

The low prices caused traffic problems outside the United petrol station’s Byng Street entrance throughout the day, patrons queuing along the street from 8am to make the most of the savings.

The price drop delivers a $25 saving to Orange resident Chris Brayley each time he fills up the tank of his Ford sedan. It’s a saving he said couldn’t come at a better time as the holiday season approaches.

“It’s the third time I’ve filled up here and I’ll keep coming back and supporting United because they continue to have the lowest price,” Mr Brayley said.

“It’s only now that I can afford to fully fill my tank and start taking longer day trips away.”

And there’s more good news. A local consumer expert predicted the low price should remain for at least six months due to the looming international recession.

Western Research Institute CEO Tom Murphy said the low price had not been seen in the area since 2002, before Woolworths petrol started trading.

He said the price drop was due to a combination of heightened local competition since United opened in Orange and the drop in international oil prices - from $147 a barrel a few months ago to just $47 yesterday.

“The majority of the price is determined by the international oil price. [Because of] The uncertainty due to the fear of international recession, the price has dropped,” Mr Murphy said.

As the uncertainty is set to continue, Mr Murphy predicted prices would stay low until at least mid-2009.

“People need to continue to shop around and shop where the price is cheapest if they want the market effect to continue - it depends upon local people not being complacent,” he said.

United’s introduction into the Central West continues to have an impact in the region. Prices also dramatically dropped in Dubbo and Bathurst following the opening of outlets in these centres recently.