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Author: Craig Eardley

Petrol savings can help pay off the mortgage sooner

The money people are currently saving at the petrol pump at the moment can be used to generate thousands more in savings according to the Greater Building Society.

The Greater  has compared average weekly unleaded petrol prices nationally and in 12 cities and towns in NSW and the Gold Coast at the week ending February 8 with the week ending June 29 2014. The figures come from the Australian Petroleum Institute.

In that time, the average national price has come down from $1.54 per litre to $1.13 per litre a saving of 41c per litre. In Sydney and Newcastle the saving has been 45 c per litre and it’s 47c per litre on the Gold Coast. The highest saving was on the Central Coast (50c per litre) and the lowest in Orange (19 c per litre).

For someone using 60 litres of petrol a week the saving nationally is $24.84 per week. In Sydney, Newcastle and the Gold Coast the saving is more than $27 per week. People on the Central Coast are saving as much as $30 per week whilst people in Orange are still saving $11.34 a week.

Greater spokesman Matt Hingston said if people are able to save that money or use it to pay off a loan they will be even better off.

He said on a 30 year, $300,000 Greater Building Society basic variable home loan , an extra $25 per week will save $38,800 in interest over the life of the loan and cut the loan term by three years and eight months. On a $25,000 five year secured car loan, an extra $25 per week will save $1,100 in interest and take one 1 year off the loan.

Unleaded Petrol Average $/L Price for 60L
City/Town June 2014 Feb 2015 Difference June 2014 Feb 2015 Difference
National Avge $1.54 $1.13 $0.41 $92.40 $67.56 $24.84
Central Coast $1.61 $1.11 $0.50 $96.60 $66.66 $29.94
Gold Coast $1.56 $1.09 $0.47 $93.60 $65.64 $27.96
Sydney $1.56 $1.11 $0.45 $93.60 $66.36 $27.24
Tweed Heads $1.57 $1.12 $0.45 $94.20 $67.08 $27.12
Newcastle $1.60 $1.15 $0.45 $96.00 $69.06 $26.94
Wollongong $1.57 $1.13 $0.44 $94.20 $67.92 $26.28
Dubbo $1.55 $1.17 $0.38 $93.00 $70.32 $22.68
Armidale $1.61 $1.22 $0.39 $96.60 $73.44 $23.16
Bathurst $1.53 $1.16 $0.37 $91.80 $69.72 $22.08
Coffs Harbour $1.56 $1.21 $0.35 $93.60 $72.42 $21.18
Port Macquarie $1.58 $1.26 $0.32 $94.80 $75.36 $19.44
Forster $1.57 $1.25 $0.32 $94.20 $74.94 $19.26
Orange $1.48 $1.29 $0.19 $88.80 $77.46 $11.34

“The important thing is not to spend the saving or let it fritter away,” Mr Hingston said.

“Increase your automatic repayment by the saving; if you don’t see it, you won’t miss it,” he said.

“Although petrol prices have started to turn upwards you may find you can still keep the habit of saving that little bit more.”    

“If your bank offers free internet banking redraws (like The Greater), any extra repayments you make on your home loan can easily be re-borrowed if you need it.”

“Low petrol prices and cuts to home loan interest rates are giving people a chance to really save.”

He said The Greater’s website calculators make it easy to show people all the ways they can save.

The Greater Building Society provides home loans and other banking services to around a quarter of a million customers in Sydney, regional NSW and on the Gold Coast.