Melbourne motorists hit with petrol prices at six-month highs ahead of long weekend

Petrol prices at some Melbourne servos have hit their highest for the year so far, but industry experts say there are still bargains about — for now. Could the price go even higher for the Queen’s Birthday long weekend?

Petrol prices has jumped across Melbourne. Picture: iStock

The highest fuel prices this year are punishing Melbourne motorists with the cost of unleaded fuel nudging $1.70 a litre.

A peak price of 167.9c was recorded in the city today.

The sting was adding around $20 to the cost of filling up a typical family sedan compared with recent price lows.

CommSec chief economist Craig James said fuel prices had been on a steady increase as retailers passed on rises in the wholesale price.

He estimated the average household was now spending $240 week on petrol.

“The prices we’re seeing at the moment are the highest since October last year,” Mr James said.

“It all certainly adds up and takes a toll on spending in other areas.”

RACV vehicle engineering manager Michael Case said unleaded petrol prices had increased as part of a new fuel price cycle in Melbourne.

“An increase of 30c a litre from 137.6c to 167.9c, would add about $15 to $20 to a full tank of fuel for the average car or more for some four-wheel drives with larger or multiple fuel tanks,” Mr Case said.

He said the highest fuel price was at 167.9c a litre, but the average was 150c a litre.

“There is still plenty of cheaper fuel available around Melbourne where prices have not yet increased,” Mr Case said.

The peak fuel price for Melbourne’s last cycle was 160.5c a litre on May 11, with it lasting only 15 days to a low of 137.6c.

“This is an unusually short cycle with a higher new peak price,’’ Mr Case said.

“Wholesale prices had been increasing, which may have prompted the increase in retail prices but have declined in the past few days.”

Swinburne University fuel expert Prof Abbas Valadkhani said a system needed to be implemented in Victoria, where fuel prices froze for 24 hours.

“We have made recommendations to authorities to implement tools such as Fuel Watch where prices are locked in for 24 hours — this makes it fairer for motorists,” Prof Valadkhani said.

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Mr James said drivers wouldn’t have much relief at the bowser over the Queen’s Birthday long weekend.

“Prices are still likely to be an average of 150 to 155c a litre by this time next week — so not a lot of relief is to be expected in such a short space of time.”

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