I heard on the news last night that petrol was selling for under $1/L in Western Sydney today. Apparently this is the lowest it has been since January 2007.
Obviously this huge drop in price is going to be a welcome relief but I wonder what people will do with the extra money. Will it just get re-absorbed into their general day to day spending? I suspect that this is what will happen in the majority of cases.
Another possibility is to put aside the extra money pay off debt. Even $10 per week can make a huge difference to a getting rid of personal debt and it was money that was being used for petrol anyway, so it shouldn’t be missed. Sure, the budget will still be tight, but it was like that last month and the month before that right? And it won’t take long before you notice a drop in the interest you are paying – especially on credit card debt.
And what about those of us that are debt free? Why not boost (or start) your savings instead, or salary sacrifice the amount and get a tax benefit too.
For those of us that have reduced their car usage and walked to the shops or used public transport, why not live consciously and keep walking and enjoying the fresh air. I know I will.