Cost of fuel high in Aussie capital cities despite drop in oil prices

Motorists across the country are being whacked by exorbitant petrol prices, with one city’s average for fuel reaching record highs.

Motorists across Australia are being whacked by “exorbitant” petrol prices, with Brisbane expected to break records for its highest average for fuel.

Despite a drop in oil prices, unleaded fuel remains high across the country’s capital cities at $1.73 a litre in Brisbane, $1.63 in Adelaide, $1.55 in Melbourne and $1.45 in Sydney.

Drivers in Perth can expect to pay $1.40 on Tuesday, typically the cheapest day of the week for fuel.

NRMA spokesperson Peter Khoury said 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.”

Despite a drop in oil prices, unleaded fuel remains high across the country’s capital cities. Picture: NCA NewsWire / Kelly Barnes

Mr Khoury said Brisbane broke a record for its highest fuel price average last month, and motorists in the Sunshine State capital could expect that record broken again in the next few days.

He said the average of $1.73 a litre was the highest average Australian motorists had 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 said the cost of fuel across Sydney had decreased by just 8c in the past 20 days – the city’s slowest fall 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.

Motorists across Australia are being whacked by exorbitant petrol prices. Picture: Josie Hayden

He warned motorists not to expect a drop in prices anytime soon, with prices being “consistently high” all year.

He did, however, encourage drivers in Perth to “fill up today”, as Tuesdays were typically the cheapest days of the week for fuel.

Motorists in Melbourne could expect a “very slow drop” over the next few days.

While some independent business owners of BP stations set their own prices, BP said prices at the pump were impacted by several factors.

“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.”

Originally published as Cost of fuel high in Aussie capital cities despite drop in oil prices