Bundaberg records cheapest fuel in Queensland

Fuel price records toppled in 2023, with Queensland regional towns and cities paying more for unleaded fuel than ever before - but not everywhere.

Bundaberg drivers paid an average 178.6 cents per litre for fuel in 2023, the cheapest in Queensland.

Motorists across most regional Queensland towns paid more for unleaded petrol in 2023 than ever before, according to RACQ’s annual Fuel Price Report.

The Club’s analysis revealed eight out of the 10 largest regional centres posted record high average unleaded prices for 2023, with Toowoomba emerging as the most expensive with an average 187 cents per litres, and Bundaberg the cheapest with an average 178.6 cents per litre.

Where to find the cheapest fuel in south east Qld

Maryborough motorists paid an average 183.9 cents per litre, Hervey Bay 184.2 and Gympie 184.7 cents per litre.

Motorists across most regional Queensland towns paid more for unleaded petrol in 2023 than ever before, according to RACQ’s annual Fuel Price Report.

‘Exorbitant prices’: Brisbane slugged highest for petrol in the country

RACQ Principal Economic and Affordability Specialist Dr Ian Jeffreys said low prices were in part due to global oil prices.

“The war in Ukraine, OPEC+ production cuts and conflict in the Middle East pushed up global oil prices,” he said.

“That, paired with a weaker Australian dollar, saw petrol prices surge across Queensland in 2023.

“Only Cairns and Mackay didn’t break records for average unleaded prices in 2023,” Dr Jeffreys said.

Zooming in further, according to website FuelRadar, Freedom Fuels Bundaberg on Kendall Street had the cheapest fuel in town at 167.5 cents per litre for unleaded and 193.5 cents per litre for diesel (as at January 23, 2o24).

Freedom Fuels East Bundaberg offers some of the cheapest fuel in the state.

Looking to more rural parts of Queensland, only Dalby offered cheaper fuel for unleaded, but by a slim margin at the checkout with 178.4 cents per litre.

Brisbane drivers relying on diesel fuel were hit with some of the highest prices in the country, recording the most expensive fuel of the five largest capital cities at 203.6 cents per litre on average.

According to the report, fuel prices are expected to remain similar in 2024, and may actually be cheaper than the second half of 2023.

Dr Jeffreys said this may be due to the low average indicative retail margins across Queensland.

“The indicative retail margin estimates how much service stations charged motorists on top of the wholesale price they purchased the fuel for,” he said.

“Across nearly all of Queensland’s large regional centres, motorists were paying around 5cpl (cents per litre) or less in indicative retail margins.

“It’s encouraging to see that fuel companies did not use international factors as an excuse to boost profits from regional motorists.”