Most expensive and cheapest regional areas for petrol revealed

Country drivers are paying up to $160 a year more on average to fill their petrol tanks than city motorists. See which spots cost you the most — and the four centres that actually come in cheaper than Melbourne.

Country drivers are slugged up to $160 a year more on average to fill their petrol tanks than city motorists.

Holiday hot spot Mansfield was Victoria’s most expensive monitored unleaded fuel location last year, Herald Sun analysis of price data from the nation’s consumer watchdog reveals.

Yarrawonga, Ararat, Horsham and Corryong were next harshest on the hip pocket.

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Mansfield Shire mayor Harry Westendorp said country residents often copped the brunt of paying a premium for fuel.

“A lot of those people affected are farmers who are doing it tough at this time in the current drought and poor harvest conditions,” Cr Westendorp said.

Most monitored regional locations had a higher annual average unleaded price than Melbourne. Picture: iStock

Melbourne’s average unleaded price for 2018 was 143.6c a litre, according to the Australian Competition and Consumer Commission.

Most monitored regional areas were higher. For those, their annual price ranged from 143.9c in Seymour, to 149.7c in Mansfield.

When filling a 50-litre tank weekly, that equates to an extra $7.80 to $158.60 a year.

A handful of locations — Shepparton, Morwell, Bairnsdale and Wallan — recorded a cheaper average annual unleaded price than Melbourne.

The equivalent yearly saving ranged from $5.20 in Wallan, to $31.20 in Shepparton.

The ACCC said country prices were generally higher because of factors such as less competition; lower volumes of fuel sold; distance to transport fuel; and lower convenience store sales.

Dozens of Victorian regional locations are among 190 nationwide that it monitors, along with capital cities.

Country petrol prices are generally higher because of factors such as less competition. Picture: David Crosling

Vinnies spokesman Gavin Dufty said motorists in regional areas were more likely to seek emergency relief to cover transport expenses including fuel, registration and car servicing.

“They often experience the double whammy of higher costs and longer travelling distances,” Mr Dufty said.

Cr Westendorp said: “We don’t enjoy the privilege or luxury that metropolitan residents have of a lot of petrol stations competing with each other.

“And when we want anything other than the basic things we have to travel further to get them. It’s the price we accept for the lifestyle we enjoy.”

The ACCC’s latest petrol monitoring report found prices in many of the nation’s regional locations did not fall as dramatically towards the end of the year as they did in major cities. However, prices continued to drop early this year.

“While retail petrol prices in regional locations generally follow movements in the international price of refined petrol, they often do not respond as quickly — either up or down — as prices in the five largest cities,” the report stated.

For example, average regional prices did not rise as significantly as major cities from August to September last year, and did not fall at the same rate in November.

Victorian regional areas were an average 2.9c a litre less than Melbourne in September, but an average 7.6c per litre more in December.

Most regional areas have a steadier price pattern than the volatile metropolitan cycle that involves prices sharply rising to a peak, gradually falling over weeks, then jumping again.

A state parliamentary committee inquiry last year recommended reviewing planning policies to “encourage the entry of new service stations to regional fuel markets with low competition”.

AVERAGE UNLEADED PRICE 2018

Melbourne 143.6c

Ararat 149.1c +5.5c

Bairnsdale 143c -0.6c

Ballarat 144.9c +1.3c

Benalla 147.1 +3.5c

Bendigo 144.9c +1.3c

Cobram 146.9c +3.3c

Colac 145.8c +2.2c

Corryong 148.7c +5.1c

Echuca 148.4c +4.8c

Euroa 147c +3.4c

Geelong 144.1c +0.5c

Hamilton 147.8c +4.2c

Horsham 148.9c +5.3c

Koo Wee Rup 145.2c +1.6c

Kyabram 147.3c +3.7c

Lakes Entrance 147.7c +4.1c

Leongatha 146.6c +3c

Mansfield 149.7c +6.1c

Mildura 147.5c +3.9c

Moe 146c +2.4c

Morwell 142.9c -0.7c

Portland 146.9c +3.3c

Sale 148.1c +4.5c

Seymour 143.9c +0.3c

Shepparton 142.4c -1.2c

Swan Hill 147.4c +3.8c

Traralgon 146.8c +3.2c

Wallan 143.4c -0.2c

Wangaratta 145.1c +1.5c

Warrnambool 147.7c +4.1c

Wodonga 146c +2.4c

Wonthaggi 146.3c +2.7c

Yarrawonga 149.4c +5.8c

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@KarenCollierHS