The cost of unleaded fuel in Warrnambool has gone down by 26 cents a litre in three weeks.
On Thursday, the price at APCO was 173.9cpl.
This is compared to 199.9cpl on March 23.
ACPO Service Station director Peter Anderson said he had been keen to pass on the savings to customers as soon as he could after the federal government announced it was halving the fuel excise tax as part of its budget.
"I was surprised (by the excise cut)," Mr Anderson said.
"These things have been rumoured in the past and haven't happened."
Mr Anderson said he was pleased he was able to lower the price for customers.
He said the cost per barrel had reduced even more this week.
"My belief is that is a result of the US releasing oil into the market, which has had an impact on the price," Mr Anderson said.
He said the price of unleaded fuel had decreased by 4 cents a litre in the past week, while diesel had decreased by 3 cents a litre.
Prior to the federal election, the price of petrol rose above $2 a litre.
At the time NRMA spokesman Peter Khoury said prices were likely to spiral out of control in the coming weeks.
He said the price drivers are paying at the bowser was unprecedented.
"We're struggling to be able to point to any factors globally that will provide any sort of short-term relief," he said at the time.
The price spikes were attributed to the US banning Russian oil and gas imports.
In addition to that, Russia threatened to push prices up to $US300 ($A414) a barrel by cutting supplies to Europe in retaliation to heavy sanctions levelled against it.
Related content: South-west motorists urged to fill up ahead of price hikes
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