Fuel prices have dropped below a major milestone, with unleaded available for under $2 in all capital cities.

The shift marks a rare moment of relief for motorists after months of volatility, with prices easing below a level long seen as a pressure point for household budgets.

WATCH THE VIDEO ABOVE: Fuel prices drop below $2 across Australia

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On Sunrise, Matt “Shirvo” Shirvington described the change as a “milestone”.

Co-host Nat Barr said the drop would be welcomed in Canberra, adding the “government is happy today”.

The easing comes as the fuel excise cut continues to flow through to consumers, helping drive down prices nationwide.

Sydney is leading the country, with the cheapest unleaded recorded at $1.69 per litre at Temco Petroleum in Greenacre. Diesel at the same site is sitting at $2.59.

Across other capitals, prices are also trending lower.

Brisbane motorists can access unleaded for $1.89 and diesel for $2.75 at Quill Petroleum in Red Hill, while on the Gold Coast, Hope Energy in Biggera Waters is offering unleaded at $1.91 and diesel at $2.86.

Melbourne’s west has dipped to $1.77 for unleaded at Metro Truganina, with diesel at $2.83, while Canberra is sitting just under the $2 mark, with unleaded at $1.97 and diesel at $2.79 at Metro Petroleum in Fyshwick.

Adelaide drivers can fill up for $1.85 at a service station at Mobil Hampstead Gardens, while Perth is matching Melbourne’s lows, with unleaded at $1.77 and diesel at $2.65 at Burk Cannington.

Hobart and Darwin round out the national picture, with unleaded sitting at $1.85 and $1.98 respectively, and diesel remaining below $3 in both cities.

While prices still vary between suburbs and service stations, the broader trend is showing fuel has dropped.