If you have ever pulled into a servo and felt a sting watching the numbers climb on the pump, you are not alone. Petrol is one of the most visible everyday costs in Australia, and price swings of 30 to 50 cents per litre within a single month are not unusual. In 2025, the national average price for unleaded 91 hovered between roughly $1.70 and $2.10 per litre depending on when and where you filled up.
This article unpacks exactly what goes into the price on the bowser, why it changes so often, and what you can do to pay less.
Average Petrol Prices by State
Petrol prices in Australia vary significantly depending on where you live. Capital cities generally see lower averages than regional towns, thanks to greater competition among retailers. Based on data from the Australian Institute of Petroleum and FuelWatch, here is an indicative snapshot of average ULP 91 prices across the states and territories as of early 2026:
| State / Territory | Average ULP 91 (cents/litre) |
|---|---|
| New South Wales | 185 - 200 |
| Victoria | 180 - 195 |
| Queensland | 185 - 205 |
| Western Australia | 175 - 195 |
| South Australia | 185 - 200 |
| Tasmania | 195 - 210 |
| Northern Territory | 195 - 215 |
| ACT | 185 - 200 |
Regional and remote areas consistently pay more. Towns in outback Queensland or the Northern Territory can see prices exceeding $2.50 per litre, driven by higher transport costs to get fuel to those locations. Tasmania tends to sit at the higher end of metropolitan averages due to the added cost of shipping fuel across Bass Strait.
What Determines the Price at the Bowser?
When you pay $1.90 for a litre of unleaded, that money gets split roughly four ways. Understanding this breakdown makes it much easier to see why prices move the way they do.
Crude Oil (About 30-40% of the Price)
The single biggest driver of petrol prices is the international price of crude oil. Australia imports the vast majority of its refined fuel, and global crude benchmarks like Brent and Singapore Tapis set the baseline. When geopolitical tensions push crude prices up, Australian bowser prices follow within a week or two.
Crude oil is traded in US dollars, so the AUD/USD exchange rate matters as well. A weaker Australian dollar means we pay more for the same barrel of oil. In practical terms, a 10% fall in the Aussie dollar can add 10 to 15 cents per litre at the pump, even if the US-dollar oil price has not moved at all.
Fuel Excise (About 25-30%)
The federal fuel excise is a flat tax applied to every litre of petrol sold in Australia. As of 2026, it sits at approximately 50 cents per litre and is indexed to CPI twice a year, meaning it creeps upward over time. This is the component that politicians occasionally tinker with. In 2022, the excise was temporarily halved for six months as a cost-of-living measure, saving drivers roughly 22 cents per litre.
The excise is earmarked for road infrastructure spending, though in practice it flows into general revenue.
GST (10%)
The Goods and Services Tax is applied on top of everything else, including the excise. That means you are effectively paying a tax on a tax. On a litre priced at $1.90, the GST component is about 17 cents.
Refining Costs and Retail Margins (About 15-25%)
Refining crude oil into usable petrol costs money, and those margins fluctuate with global refinery capacity. Australia now has only two domestic refineries (Lytton in Brisbane and Altona in Melbourne), down from seven a decade ago. This means we rely heavily on refined fuel imports from Singapore, South Korea, and Japan.
Retail margins, the slice that goes to the service station operator, are typically the smallest component. The ACCC has noted that average retail margins have trended upward in recent years, sitting at around 10 to 15 cents per litre in major cities, but competition keeps them in check in areas with multiple servos.
Understanding the Petrol Price Cycle
If you live in Sydney, Melbourne, Brisbane, Adelaide, or Perth, you have probably noticed that petrol prices seem to go up sharply and then drift back down over a period of weeks. This is the well-documented petrol price cycle.
How the Cycle Works
The cycle typically runs over a period of two to six weeks depending on the city. Prices start low, then retailers begin raising them, often by 30 to 40 cents per litre over just a few days. After hitting a peak, prices gradually fall as stations undercut each other to attract customers. The cycle then repeats.
The ACCC monitors these cycles closely and publishes data showing their regularity. In Sydney and Melbourne, cycles have historically run about 3 to 5 weeks. Perth’s cycles tend to be shorter and more regular, partly thanks to FuelWatch, the Western Australian government’s fuel price monitoring service that requires retailers to set and publish their next-day prices by 2:30 pm each afternoon.
Using the Cycle to Your Advantage
The key to saving money is to fill up near the bottom of the cycle and avoid buying near the peak. Easier said than done, but fuel price apps (covered below) make this much more practical.
As a general rule of thumb, if prices have been falling for a week or more and are near recent lows, it is a good time to fill up. If they have just jumped sharply, wait a few days for the gradual decline to kick in.
Cheapest Days to Fill Up
There is a common belief that Tuesday or Wednesday is the cheapest day to buy petrol. The reality is more nuanced and varies by city, but the data does show some patterns.
In cities with regular price cycles, the cheapest day tends to be the day just before the next price spike. Since spikes often happen mid-week in Sydney and Melbourne, Monday and Tuesday can sometimes be cheaper, but this is not a hard rule.
In Perth, FuelWatch data shows that prices are set daily and the cheapest day shifts regularly. The best strategy there is simply to check FuelWatch the afternoon before you plan to fill up.
Rather than relying on a specific day of the week, using a real-time fuel price app is far more effective.
Best Apps for Finding Cheap Fuel
Several free apps and websites track real-time petrol prices across Australia. Here are the most widely used:
Petrol Spy
Crowd-sourced and widely used, Petrol Spy shows prices reported by users at nearby stations. It covers all states and lets you filter by fuel type. The data is generally reliable in metropolitan areas where there are plenty of contributors.
FuelWatch (WA Only)
Run by the Western Australian government, FuelWatch is mandatory for all WA retailers. Every servo must lodge its next-day price by 2:30 pm, and that price is locked in for 24 hours. This makes FuelWatch the most accurate fuel pricing tool in the country, though it only covers Western Australia.
MotorMouth
MotorMouth aggregates data from government sources and user reports. It covers all states and includes useful features like price trend charts and cheap fuel alerts.
State Government Apps
New South Wales has FuelCheck, which requires retailers to report prices in real time. Queensland does not mandate price reporting, making crowd-sourced apps more important there. Victoria and South Australia have similar voluntary or mandated reporting schemes.
Practical Tips for Using Fuel Apps
- Check prices before you leave home, not when you are already running on empty.
- Compare prices within a 5 to 10 km radius. Driving 20 km to save 5 cents per litre is usually not worth it.
- Set price alerts if the app supports them so you get notified when nearby prices drop.
Practical Ways to Reduce Your Fuel Costs
Beyond buying at the right time, there are several strategies that can trim your annual petrol bill.
Supermarket Fuel Discounts
Woolworths and Coles both offer fuel discount vouchers (typically 4 cents per litre) through their respective partnerships with Caltex/Ampol and Shell/Viva Energy. Stacking these discounts with a purchase near the bottom of the price cycle can save you a noticeable amount over a year.
If you spend $100 per week on groceries and consistently use the 4 cents per litre discount on a 50-litre tank, that is about $2 per fill, or roughly $100 per year.
Drive More Efficiently
Fuel consumption is heavily influenced by driving behaviour. According to the Australian Automobile Association, the following habits can reduce fuel use by 10 to 20 per cent:
- Maintain steady speeds. Aggressive acceleration and hard braking waste fuel.
- Use cruise control on highways where safe to do so.
- Keep tyres inflated to the manufacturer’s recommended pressure. Under-inflated tyres increase rolling resistance.
- Remove unnecessary weight. Roof racks and heavy items in the boot increase fuel consumption.
- Limit air conditioning use in city driving where possible. At highway speeds, air conditioning is generally more efficient than open windows.
Consider Your Fuel Type
Many cars designed for ULP 91 can also run on E10, which is typically 3 to 5 cents per litre cheaper. E10 contains up to 10 per cent ethanol and delivers slightly lower fuel economy (roughly 3 per cent less), so the savings are modest but real for compatible vehicles. Check your owner’s manual before switching.
On the other hand, putting premium 95 or 98 in a car that only requires 91 is usually a waste of money unless the manufacturer specifically recommends it.
EV vs Petrol: The Cost Comparison
With petrol prices remaining stubbornly high, more Australians are considering electric vehicles. But are they actually cheaper to run? The short answer is yes, significantly, at least in terms of energy costs.
Running Costs
A typical petrol car consuming 8 litres per 100 km at $1.90 per litre costs about $15.20 per 100 km in fuel.
A comparable electric vehicle consuming 16 kWh per 100 km charged at home at an average residential electricity rate of 35 cents per kWh costs about $5.60 per 100 km.
That is a saving of roughly $9.60 per 100 km, or about $1,440 per year for a driver covering 15,000 km annually.
If you have rooftop solar and charge during the day, your marginal cost drops even further, potentially close to zero.
Purchase Price
The catch is the upfront cost. Entry-level EVs in Australia start from around $40,000 to $50,000, while a comparable petrol hatchback might be $25,000 to $35,000. The price gap has been narrowing as more affordable models enter the market, but it still takes several years of fuel savings to offset the higher purchase price.
Maintenance
EVs have fewer moving parts, no oil changes, and regenerative braking that reduces brake wear. Annual servicing costs are typically $200 to $400 less than a comparable petrol vehicle.
The Break-Even Point
For a driver covering 15,000 km per year, saving roughly $1,400 in fuel and $300 in maintenance, the annual running cost advantage of an EV is around $1,700. If the purchase price premium is $15,000, the break-even point is roughly 8 to 9 years, not accounting for battery degradation or potential government incentives.
Several states offer EV incentives including stamp duty exemptions and registration discounts, which can shorten the payback period. Victoria, notably, introduced an EV road user charge, though its future remains subject to policy review.
What Is Ahead for Australian Petrol Prices?
Petrol prices are influenced by global forces largely outside Australia’s control. The ongoing energy transition, OPEC production decisions, refinery capacity, and geopolitical tensions all play a role.
In the medium term, Australia’s increasing reliance on imported refined fuel (following the closure of most domestic refineries) means we remain exposed to supply chain disruptions and international pricing.
Government policy on fuel excise, EV adoption incentives, and public transport investment will all shape how much Australians spend on getting around in the years ahead.
Government Fuel Subsidies and Tax Relief
While there is no permanent fuel subsidy for general consumers in Australia, several government programmes provide relief for specific groups.
Fuel Tax Credits (For Businesses)
Businesses that use fuel for off-road activities, such as agriculture, mining, and heavy transport, can claim fuel tax credits through the ATO. These credits effectively refund part or all of the fuel excise. Farmers, in particular, benefit significantly from this scheme, with eligible agricultural activities qualifying for a near-full refund of the excise. The credit rate is adjusted twice yearly in line with CPI indexation of the excise.
Remote Area Fuel Costs
Residents in remote and very remote areas face fuel prices that can exceed $2.50 to $3.00 per litre. The federal government’s Zone Tax Offset provides a modest tax deduction for residents in specified remote zones, but it is widely regarded as insufficient to offset the true cost differential. Some state governments provide additional remote area subsidies. For example, the Queensland Government’s Fuel Subsidy Scheme provides a per-litre subsidy for fuel sold in certain remote communities, though the amount varies.
Temporary Excise Cuts
During the 2022 cost-of-living crisis, the federal government temporarily halved the fuel excise for six months, reducing it by approximately 22 cents per litre. While the full excise was restored after the temporary period, the intervention demonstrated the significant impact that excise policy has on bowser prices. Future temporary cuts remain a policy lever available to governments facing political pressure on fuel costs, though they come at a substantial revenue cost to the budget.
Electric Vehicle Incentives by State
As petrol costs remain elevated, government incentives for electric vehicles provide an indirect form of fuel cost relief.
- New South Wales: Stamp duty exemption for EVs and plug-in hybrid electric vehicles (PHEVs) under $78,000. The NSW Government also invested in expanding public charging infrastructure.
- Victoria: $100 annual EV road user charge (subject to legal challenges and policy review). A $3,000 rebate for new EVs priced under $68,740 was previously available but has now ended.
- Queensland: No stamp duty on EVs under $58,000. A $6,000 rebate for eligible EVs was offered in earlier rounds, and the state has invested heavily in the Electric Super Highway charging network.
- South Australia: Three-year registration exemption for new battery electric vehicles. No EV-specific road user charge as of early 2026.
- Western Australia: Registration duty concession for EVs. The state also funded public fast-charging stations along major regional routes.
- Tasmania: Stamp duty concession and two-year registration discount for new EVs.
- ACT: Zero stamp duty on new and used zero-emission vehicles. Two years of free registration for new EVs. The ACT has among the most generous EV incentives in the country.
The Fuel Quality and Octane Debate
Many Australian drivers are confused about which fuel to use and whether premium fuels are worth the extra cost.
Understanding Octane Ratings
Octane ratings measure a fuel’s resistance to knocking (premature combustion). In Australia, the common grades are:
- E10 (91 RON with ethanol): The cheapest option, typically 3 to 5 cents per litre less than ULP 91. Contains up to 10 per cent ethanol.
- ULP 91 (Regular Unleaded): The standard fuel for most passenger vehicles.
- PULP 95 (Premium Unleaded): Required by some European and performance vehicles.
- PULP 98 (Ultra Premium): Required by some high-performance engines and European luxury brands.
When Premium Fuel Is a Waste of Money
If your car’s manufacturer specifies ULP 91 as the minimum requirement, putting PULP 95 or 98 in the tank provides no meaningful benefit. You will not get more power, better fuel economy, or a cleaner engine. You are simply paying an extra 15 to 30 cents per litre for no practical advantage.
When Premium Fuel Is Necessary
If your vehicle requires 95 or 98 RON (check the fuel filler cap or owner’s manual), using a lower octane can cause engine knocking, reduced performance, and potential long-term engine damage. For these vehicles, the premium is a necessary cost. Turbocharged engines, direct-injection engines, and European marques like BMW, Mercedes-Benz, Audi, and Volkswagen commonly require 95 or 98 RON.
The E10 Question
E10 fuel delivers approximately 3 per cent less energy per litre than ULP 91, meaning your fuel consumption will be marginally higher. If E10 is more than 3 per cent cheaper than ULP 91, it is a genuine saving. At current pricing differentials of 3 to 5 cents per litre, E10 typically delivers a small net saving for compatible vehicles. However, not all vehicles can use E10. Check the Federal Chamber of Automotive Industries (FCAI) database or your owner’s manual before switching.
LPG, Diesel, and Alternative Fuels
Diesel
Diesel prices in Australia typically run 5 to 20 cents per litre above ULP 91, though the gap fluctuates. Diesel vehicles generally achieve 20 to 30 per cent better fuel economy than equivalent petrol models, which can offset the higher per-litre cost. For high-mileage drivers, particularly those towing or driving larger vehicles, diesel often works out cheaper per kilometre.
LPG (Autogas)
LPG was once a popular alternative, with prices typically 40 to 50 per cent below ULP 91. However, the number of LPG-equipped vehicles and LPG outlets has declined dramatically. Many service stations have removed their LPG pumps, making it increasingly impractical as a daily fuel choice. Unless you already own an LPG-equipped vehicle and live in an area with readily available outlets, converting to LPG is no longer economically sensible.
Hydrogen
Hydrogen fuel cell vehicles remain a niche technology in Australia, with fewer than 100 vehicles on the road and a handful of refuelling stations. While hydrogen may play a role in heavy transport and fleet vehicles in the future, it is not a practical consumer option in 2026.
Frequently Asked Questions
Why do petrol prices change so quickly?
Petrol prices reflect changes in the international price of refined fuel, which is set daily on the Singapore benchmark (MOPS). Retailers adjust their prices in response, typically with a lag of one to two weeks. The price cycle in major cities amplifies these movements.
Is it worth driving to a cheaper servo?
Generally, only if it is within a few kilometres of your usual route. Driving 10 km to save 5 cents per litre on a 50-litre fill saves $2.50 but costs roughly $1.50 to $2.00 in fuel to get there and back. Use fuel apps to find the cheapest option nearby rather than making a special trip.
Why is fuel more expensive in regional areas?
Higher transport costs to deliver fuel, less competition between retailers, and lower sales volumes all contribute. Remote servos may have only one supplier, eliminating competitive pressure on pricing.
Does cruise control really save fuel?
Yes. Maintaining a steady speed on the highway avoids the fuel waste of constant acceleration and deceleration. Studies by motoring organisations suggest cruise control can improve highway fuel economy by 5 to 10 per cent on flat terrain.
Are fuel discount vouchers from supermarkets worth using?
Yes, though the savings are modest. A 4-cent-per-litre discount on a 50-litre tank saves $2.00. Over a year of weekly fills, that adds up to roughly $100. It is free money if you are already shopping at the linked supermarket, but it should not influence where you buy your groceries.
Key Takeaways
- Petrol prices are driven primarily by global crude oil prices, the AUD/USD exchange rate, fuel excise, and GST.
- Price cycles in major cities mean timing your fill-up can save 20 to 40 cents per litre.
- Fuel price apps like Petrol Spy, FuelWatch (WA), and FuelCheck (NSW) are essential tools for finding the cheapest nearby servo.
- Small changes in driving habits can reduce fuel consumption by 10 to 20 per cent.
- EVs are significantly cheaper to run per kilometre, but higher upfront costs mean the break-even point is several years away for most buyers.
Disclaimer: This article is for general informational purposes only and does not constitute financial, tax, or professional advice. Prices, figures, and policy details referenced are indicative and may change over time. Always verify current pricing and eligibility for any subsidies or incentives with the relevant provider or government authority before making financial decisions.