Cost of fuel in Australia’s major cities still hefty despite drop in oil prices

News Cost of fuel hefty

Across Australia, motorists are being hit by “exorbitant” petrol costs, with Brisbane likely to set new records for the highest average price.

Despite lower oil prices, unleaded fuel costs in Australia’s key cities remain high, at $1.73 a litre in Brisbane, $1.63 in Adelaide, $1.55 in Melbourne, and $1.45 in Sydney.

On Tuesday, drivers in Perth can expect to pay $1.40 for fuel, normally the cheapest day of the week.

According to NRMA spokesperson Peter Khoury, Petrol prices should be “significantly lower than what they are.”

“We’re seeing some exorbitant prices,” he said.

“Oil prices have come back – we’re at $US89 a barrel down from 82 and 83. The Australian dollar is very stable at the moment – prices shouldn’t be as high as they are.”

Last month, Brisbane set a new record for the highest average fuel price, according to Mr Khoury, and motorists in the Sunshine State capital can expect the record to be broken again in the coming days.

He said that the current average price of $1.73 per litre was the most that Australian motorists had ever seen.

 “The wholesale price is around $1.40 – that gives you an idea about how wide the profit margins are right now,” Mr Khoury said.

He also stated that Sydney’s fuel cost has dropped by only 8 cents in the last 20 days, the city’s smallest drop on record.

“What we’re seeing is fuel volumes falling because people aren’t travelling as much – particularly in locked-down areas like Sydney where the mobility is a lot less – but profit margins have stayed higher,” Mr Khoury said.

He warned motorists not to expect a price drop anytime soon, claiming that prices had been “consistently high” throughout the year. He did, however, advise Perth drivers to “fill up today,” citing Tuesdays as the cheapest day of the week for fuel. 

Over the next three days, motorists in Melbourne can expect a “very slow drop.”

While some BP station owners set their prices, BP said several factors shape prices at the pump.

“Including international product prices and competition between service stations in a local area. There are also other factors, including exchange rates, taxes and local operating costs,” a spokesperson said.

“When it comes to retail fuel pricing, our aim is to be competitive and attract customers to our sites.”

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