Petrol prices plunge on cue for school holidays

Fuel prices are at their lowest level in more than eight months, right on cue for the school holidays, with RACQ calling for major changes to ensure the prices stay low.

Petrol prices have dropped significantly, with the average sitting at just $1.74 a litre. Picture: NCA Newswire / Gaye Gerard.

Petrol prices have plunged to their lowest level in more than eight months, right on cue for the school holidays.

Average unleaded fuel prices in Brisbane surged to above $2.30 a litre in April but have been steadily falling since and were sitting at $1.74 a litre on Saturday.

This came after they hit a peak of $2.01 last month in the current petrol price cycle.

Unleaded petrol in Brisbane hit a low of 88c a litre during the pandemic in 2020 but have risen since and touched a peak of $2.33 last October.

Average prices are forecast to fall below $1.70 for the first time in more than a year.

But despite the big drop, attributed to factors including falling world oil prices, Brisbane fuel prices remain among the highest of the nation’s capitals.

It’s biggest recent peak of $230.6 in April was the highest of any of the major cities while Brisbane’s unleaded fuel price on Saturday was equal third highest, behind Melbourne at $1.92 and Sydney at $1.88.

The RACQ said Brisbane motorists were still being ripped off at the bowser.

The motoring body’s advocacy manager, Joshua Cooney, said average fuel retail margins over the last 30 days were still higher than what they were in April despite the price drops.

RACQ research showed Greater Brisbane’s fuel price cycle had been stretched out to an average of 38 days, five times longer than what it was in 2010.

Average prices jump in the hike by around 36 cents per litre (cpl), but hikes at individual sites may be more than 45 cents, and retail margins are an average of 23 cpl, Mr Cooney said.

“That’s why RACQ has called for the next state government to trial a cap on daily fuel price increases across Queensland – an idea researched, developed and advocated for, by the peak motoring club,” he said.

RACQ has called for the next state government to trial a cap on daily fuel price increases to help with cost-of-living pressures. Picture: NCA NewsWire / Andrew Henshaw

“This proposal needs bipartisan support. Skyrocketing petrol prices are too important be ignored by any side of politics.

“Brisbane is consistently the most expensive capital city in Australia for fuel.

“For many years, South East Queensland motorists have faced eye-watering prices at the petrol bowser with record high fuel margins and unjustified price hikes.”

Mr Cooney said South East Queensland’s fuel market was currently in the discounting phase of the fuel price cycle which was “great news” for motorists heading into the school holidays.

“Average unleaded prices in Brisbane have dropped by 16cpl in the past week and we expect prices will continue to trend down until the market hits the cheap phase of the cycle during the school holidays,” he said.

“We anticipate motorists in South East Queensland will be able to find unleaded in the high $1.60s range in most locations in the cheap phase.

“Throughout regional Queensland, petrol prices have also been trending down, following reductions in the wholesale prices.

“Our advice to motorists is to hold off from filling up if you can because prices will get slightly cheaper, but if you do need fuel make sure you’re using RACQ’s Fair Fuel app to find the cheapest service station near you.”

Treasurer Jim Chalmers, who has been battling to bring down inflation to reduce interest rates, welcomed the petrol price drop.

“We recognise that for many Australians, the cost of fuel is one of their biggest expenses, so it’s encouraging to see that prices are lower than they’ve been for months,” he said.

“Every bit of relief at the petrol bowser is welcome given the pressures on family budgets right now.”