RACQ spokesperson Renee Smith said it was because Mount Isa was one of the slowest markets to react to global oil prices.

"Unfortunately, Mount Isa is one of the slowest markets in Queensland to respond to changes in the global oil price, however in the coming months unleaded prices should fall to 120 - 130cpl," Ms Smith said.

"The latest average price for regular unleaded in Mt Isa is 153.9cpl and while prices have dipped slightly in recent days, it's disappointing that the average price has been largely unchanged since November 2019.

"Given the recent falls in oil price and Townsville Terminal Gate Price, which is the terminal supplying Mount Isa, we would've expected prices to fall."

Ms Smith said some places in Queensland have petrol prices under a $1 a litre.

"While we have seen some sites in Toowoomba and Ipswich offering regular unleaded for under $1, it's unlikely we'll see this across all of regional Queensland," she said.

"However we do expect fuel prices to keep falling due to the low oil price.

"At the moment there are two things having a major impact on the price of global oil, COVID-19 and a price war between Saudi Arabia and Russia."

Ms Smith said COVID-19 was changing the market.

"Due to travel bans implemented because of COVID-19, planes aren't flying as much and people are using their cars less, which has drastically changed demand," she said.

"At the same time, Saudi Arabia is flooding the market with cheap oil and now the price of global oil is at a 18-year-low.

"When the global oil price falls, technically so should the price of fuel and that usually takes about six to eight weeks to have a full flow-on effect in regional Queensland.

"We're closely watching prices and urging fuel companies to pass savings on to motorists. The possibility of price fixing regulations has been raised by the ACCC and considered by RACQ, but this is a last resort option. We are hopeful that fuel companies will do the right thing and pass the savings on to motorists.

"It's also crucial, that no matter where they live, drivers use apps like RACQ's Fair Fuel Finder to find the best deals in their area."

Shell was contacted for comment but did not respond.

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