The price of Brent crude oil has slumped close to 40 per cent this year, as oil producing countries refuse to cut production output targets amid a global supply glut. In December alone, the oil price has dropped 14.7 per cent.

Figures from the Australia Institute of Petroleum showed that the national average Australian petrol price fell by 4¢ to $1.284 per litre. According to CommSec, the fall in petrol prices over the last month has been the biggest monthly decline in six years, with fuel now at a four-year low. The national average wholesale price was $1.144.

In the week to January 5, 2014, the national retail average for unleaded petrol was $1.587. It has now fallen 19.3 per cent. The wholesale price in the same period has dipped 22.9 per cent.

The margin on retail fuel prices has actually increased during a time when the oil price has fallen close to 40 per cent. The difference between wholesale and retail prices in January was 9.8¢, but is now 14¢.

In the week to December 21, average retail prices in Sydney were $1.212, Canberra was $1.443m Brisbane was $1.27, Adelaide $1.162, Perth  $1.254m, Darwin  $1.487 and Hobart  1.427.

A significant recovery in oil prices doesn't look on the cards in the near term, with Saudi Arabia, the world's largest oil exporter, again ruling out production cuts over the weekend.

"If they want to cut production they are welcome: we are not going to cut, certainly Saudi Arabia is not going to cut," Saudi oil minister Ali al-Naimi said.

With more competing sources of oil from outside OPEC (Organisation of Petroleum Exporting Countries), especially from US shale, the battle of market share is pressuring prices.

Without OPEC intervention the market risks further imbalances.

Last week, Morgan Stanley cut their base case forecast for Brent crude next year from $US98 a barrel to $US70 per barrel. In its bear scenario, it saw oil hitting as low as $US43 per barrel.