Prices at the bowser have dipped below $2.10 a litre and under $3 for diesel for the first time since February across major cities.
However it may take time for consumers to feel the full impact of the Strait of Hormuz reopening.
Markets are volatile due to the turbulent nature of the Middle East conflict yet National Roads and Motorists Association spokesman Peter Khoury says recent falls in global oil prices are flowing through.
"Wholesale prices have been falling and they should continue to fall," he told AAP.
"We are focusing on the wholesale prices in Australia because that's the clearest indication of what going to happen at the bowser.
"It takes about seven to 10 days for those falls in oil prices to flow on in the Australian market.
"That's why we're starting to see prices that were certainly lower than the record highs that we've been seeing since the war began."
Despite the reprieve, Mr Khoury urged motorists to remain cautious, saying it is still unclear whether the cheaper fuel will last.
"Trying to predict what's going to happen in the Middle East is the quickest way to get made a fool of yourself," he added.
"We're really careful not to get too far ahead of ourselves but the trajectory has been in the right direction, it's been positive and we really need that to continue."
Prime Minister Anthony Albanese on Saturday described the reopening of the vital waterway as a "fragile arrangement" backed by 50 countries following an overnight summit.
"We want to see de-escalation, we want to see the Strait of Hormuz opened and we want to see no privatisation and no tolls," he told reporters in Sydney.
Australia has 46 days of petrol in stockholding and 31 days' worth of diesel, according to Energy Minister Chris Bowen.
The number of petrol stations without fuel is also dropping and there are about 120 without diesel across the country.
According to the ACCC's weekly fuel price monitoring report released on Friday, average retail petrol prices have fallen 41.6c per litre since March 31 across Sydney, Melbourne, Brisbane, Adelaide and Perth.
Australasian Convenience and Petroleum Marketers Association Rowan Lee told AAP the issue facing consumers was fuel price rather than supply.
He added that price pressures were expected to continue for at least the next six months.
"It's just really uncharted territory and that is not underplaying it," Mr Lee said.
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