Petrol prices: money-saving tips to reduce the pain at the pump

Petrol and diesel costing $2.20 a litre has shocked household budgets, and while more rises look likely there are ways to save at the pump.

Welcome to the world of $2.20 petrol. And probably $2.50 petrol. And possibly even (yikes!) $3 petrol.

Russia’s invasion of Ukraine has caused a global oil price surge that CommSec economists say could push petrol to $2.50 a litre.

It could get much worse. Every $US1 move in the oil price impacts our pump prices by about 1c.

We’re already paying around $2.20 a litre with oil last week selling for $US110 a barrel, but there has been talk of oil skyrocketing to $US200 a barrel, while Russia has warned of $US300 oil if the West bans its energy exports.

I’m no maths whiz, but $US200-a-barrel oil would add 90c a litre to today’s pump prices.

HOW TO SAVE

Despite these record-high punp prices, it’s a good idea to try to minimise the financial pain – because it can still save you serious cash.

Petrol prices move in cycles in most capital cities, often fluctuating about 30c a litre from peak to trough.

Try to time your buying, because a 30c per litre saving is still worth $18 on a 60-litre tank.

And if you’re really into timing, keep an eye on global oil prices, which usually take a couple of weeks to flow through to petrol station prices. On Wednesday morning crude oil dipped below $US100 a barrel as rising Covid cases in China caused concerns over lower demand.

USE APPS

Use real-time fuel apps, which tell you what servos are charging right now. Shop around, but remember that petrol is now more precious so don’t waste money driving across town just to save a few cents.

Fuel has reached $2.20 a litre in several capitals. Picture: NCA NewsWire / Naomi Jellicoe

Some finance specialists recommend people top up rather than fill up their tanks, but that strategy only works if prices don’t climb further. I personally prefer filling up, because that means more time before my next frustrating visit to a petrol station.

DISCOUNTS

Those 4c, 8c and 10c a litre discounts motorists get for using reward cards and buying non-fuel goods seem puny when each litre costs so much, but they’re still worthwhile.

A discount of 8c a litre to fill a 60-litre tank saves you about $5.

Coles Express offers 10c per litre off if you spend more than $20 on certain items instore. But make sure you’re not paying inflated service station prices for items that cancel out any fuel savings.

CUTTING COSTS

Motorway operator Transurban recently conducted an eco-driving trial and says you can use less fuel and save money by driving smoothly and reducing harsh braking, checking tyre pressures regularly, avoiding drag from open windows and removing unnecessary weight from your vehicle.

“We all want to stretch our tank of fuel a little bit further, and our eco-driving trial shows that drivers can make small changes for a big impact on the environment and their hip pocket,” says Transurban’s Simon Moorfield.

Other good petrol-saving habits include avoiding stop-start heavy traffic when you can and using airconditioning sparingly.

Can you bring back the bike? Cities have become more bicycle-friendly and pedal power costs nothing. Walking, car pooling and public transport are other potential ways to save.

Oil is often called black gold, and the longer this war goes on, the more petrol becomes like real gold.

Originally published as Petrol prices: money-saving tips to reduce the pain at the pump