Cheapest fuel prices in Melbourne, Sydney, and Brisbane revealed

Australian fuel prices have continued their downward trajectory for the second consecutive week. While the exact causes of this remain unclear, government relief measures like the fuel excise cut and GST support are likely contributing.

The average price has fallen in Melbourne, Sydney, and Brisbane since last Friday’s report. One zone registered a 19-cent drop in Melbourne in just three days.

Melbourne, Victoria

Current average: 216.6 (-3)

Melbourne’s fuel market has produced a number that demands attention. The west zone’s 194.9 cent price is an outlier in every sense. It’s nearly 22 cents below the Melbourne average. It’s 15 cents cheaper than the next-best zone. It raises an immediate question: is this a loss leader designed to draw customers, or is it a genuine reflection of lower wholesale prices? We think it’s a bit of both. The north, south-east, and south zones have all seen modest improvements of 2-3 cents.

Sydney, New South Wales

Current average: 216.6 (-0.2)

Sydney’s fuel market presents a more complicated picture. While the west zone has continued its downward trend, most other zones have stagnated, and one has even recorded an increase. The north-west zone recorded a solid 4.2-cent drop. But the south and St George zone has recorded a small increase. This is a reminder that not all zones benefit equally from falling global prices. Local competition, station ownership, and inventory costs all play a role.

Brisbane, Queensland

Current average: 216.3 (-3.3)

The city and near zone’s dramatic drop to 205.9 cents is the headline in Brisbane. This is a 14-cent reduction in just three days. The west zone has also seen solid improvement. The east and bayside and Ipswich corridor zones have seen modest improvements. The north and south zones have held steady, which in a falling market means they’ve become relatively more expensive.

Final thoughts

When prices fall for reasons we can clearly identify, such as an excise cut, a ceasefire, or a currency shift, we can have some confidence in their durability. But when prices fall for reasons that aren’t immediately obvious, a different instinct kicks in: caution. They might fall, but they might also rebound just as quickly.

Don’t drive across town chasing a 5-cent saving. The maths doesn’t work. A 5-cent saving on a 50-litre tank is $2.50. If you drive 10 kilometres out of your way to get it, you’ve burned most of that savings in fuel. 

And a special note to the stations that have appeared on our cheapest list for four consecutive snapshots: Coburg North, Kingsville, Bracken Ridge, and now Forestville.

The fuel excise cut is set to expire on 30 June. At the same time, ceasefire negotiations have failed, raising renewed concerns over a potential Strait of Hormuz blockade.