It seem low oil prices are here to stay for some time.

The price of crude oil collapsed by more than 65 percent to a 12-year low of around 30 dollars a barrel.

But we are not seeing that drop in price passed on at the pumps.

That's because the key metric for prices at the pump is the cost of refined oil, rather than crude, according to AA petrol watch spokesman Mark Stockdale.

"Refined petrol and diesel are very different commodities to oil, they move independently of oil prices, they have different supply and demand."

"Diesel is typically used by the commercial industries and agriculture sector."

"While oil prices are falling, and at a six year low, that sounds really wonderful. But the commodity price for petrol is just under $60 USD a barrel, over double the price compared to a barrel of oil."

Mathew Goodson of Salt Funds Management said there has been considerable margin expansion from petrol retailers in recent years.

"And interestingly a lot of the justification for that margin expansion has been the formerly very high prices for oil which obviously meant they had a much higher carrying cost of their inventory, but that has gone away but the margins at this point certainly have not."

The big fall in oil prices have analysts wondering exactly how low it will go.

Mr Goodson said it may be later this year or early next year before we see some sort or recovery in oil prices.

"Our feeling is that we've seen a degree of permanent change here in demand for oil even at these low prices, it does have some structural headwinds as new technologies continue to move the demand cost curve ever lower for things such as solar power, electric cars and the like."