Declining world oil prices and the ongoing coronavirus pandemic is having a significant impact on fuel costs at bowsers across the region, NRMA spokesman Peter Khoury says.

At lunchtime on Thursday the average price in NSW for regular unleaded fuel was 129.7 cents a litre, but many Central West motorists were paying well below this.

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The cheapest fuel on offer in Orange was 123.7 cents a litre, while it was a little cheaper in Lithgow (120.9), Bathurst (120.5) and Mudgee (119.9).

However motorists in Dubbo were paying well above the NSW average, with the cheapest regular unleaded on sale for 134.9 cents a litre at the Independent South Dubbo on Cobra Street.

Mr Khoury said falling world oil prices and the COVID-19 pandemic were both impacting fuel costs.

"World oil prices have dropped to $30 a barrel which is less than half of its usual price," he said.

"The global economy is shutting down and that is leading to massive falls in price due to coronavirus."

Mr Khoury said while some motorists have felt relief at the bowser, the lower prices were not always passed on.

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"Right across Australia it hasn't fallen, or as much as it should, although in some regional areas it's a bit better," he said.

Mr Khoury said while some parts of the economy and businesses had shut down, fuel was absolutely essential during the pandemic.

"We still have to go out and buy groceries and everyone's still sending their kids to school. We do need to get around still," he said.

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While oil companies "can charge whatever they want in Australia", Mr Khoury said regulation was not the answer.

"If the market works property and we've got decent competition then you don't want to regulate prices," he said.

"There is growing calls for the government to get involved, but absolutely the government has bigger things to worry about right now."

Mr Khoury urged motorists to check out fuel prices in your area before buying at Fuel Check or on the NRMA app.

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