Calm before the storm: Petrol prices fall but end of fuel excise discount looms

The cost of fuel has dropped this week but experts warn drivers it may only last a short time. Here’s where you can find the cheapest prices in Melbourne.

Petrol prices have dropped away from the dizzying highs of earlier this month.

However, experts have warned the relief for drivers may be short-ived.

The average price across Victoria for unleaded petrol is 192.8c per litre, down from prices as high as 242c last week according to the RACV’s Fuel Tracker page.

However the end for the fuel excise discount has been flagged for September, with drivers told to expect a 22c per litre price jump when the tax returns to normal.

Australasian Convenience and Petroleum Marketers Association chief executive Mark McKenzie told the Herald Sun earlier this month prices were fluctuating but no dramatic reduction could be expected any time soon.

“There’s nothing on the horizon saying there’s going to be downward pressure … the most optimistic approach would be that it’s going to be stable,” Mr McKenzie said.

Fuel prices have remained consistently high in Victoria since late February, heaping new cost-of-living pressure on all drivers. Picture: David Crosling

“Volatility is creating all sorts of challenges but we’re not seeing the dramatic increase in prices we saw in the first quarter.”

With prices on Tuesday varying by 44c per litre, the RACV is encouraging drivers to shop around with an aim of not paying above $1.89 for fuel.

Below is a list of Melbourne petrol stations offering the cheapest prices for unleaded petrol.